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Stock markets edge higher as new year begins

Asia-Pacific markets started the first full trading week of this year on a stronger note after the US had captured Venezuela’s President Nicolas Maduro over the weekend. Oil prices edged lower, signaling limited supply fears, as markets weighed the potential impact of geopolitical tensions. On Friday, US equity indices rose on the first trading day of 2026, supported by gains in semiconductor stocks such as Nvidia and Micron. The advance follows a strong 2025 when the S&P 500, Nasdaq and Dow gained more than 16%, 20% and 13%, respectively, all reaching record highs. 

Dear readers, we wish you a successful start to the new year 2026!

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  • Autore Alessandro Fezzi, Content & Publications
  • Tempo di lettura 5 minuto

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Asia-Pacific equities advanced on Monday as investors reacted to news on Venezuela. Brent crude was trading 0.3% lower at USD 60.57 and West Texas Intermediate slipped 0.4% to USD 57.09 per barrel despite the escalation involving the oil-rich OPEC member, whereas spot gold prices climbed more than 1.8% to USD 4409.29. Japan’s Nikkei 225 jumped about 3.3% with defence contractors such as IHI Corp, Mitsubishi Heavy Industries and Kawasaki Heavy Industries among the strongest gainers, and South Korea’s Kospi also rose just over 3% to a fresh record as Samsung Electronics rallied more than 7% on plans to double AI-enabled mobile devices using Google’s Gemini. Elsewhere in the region, Hong Kong’s Hang Seng Index was marginally lower as energy producers PetroChina and CNOOC fell, and US futures traded steadily after the S&P 500 and Dow Jones Industrial Average ended Friday’s first session of 2026 slightly higher.

No clear direction on Wall Street on first trading day

On Wall Street US equity markets ended Friday’s session without a clear overall direction, as the Dow Jones Industrial Average rose 0.7% to 48,382.39 while the S&P 500 edged up 0.2% to 6858.47 and the Nasdaq 100 slipped 0.2% closing at 25,206.17 after earlier gains of nearly 1.5%. Semiconductor and AI beneficiaries such as Nvidia, AMD and Micron rose between about 1% and 11%, while electric vehicle maker Tesla fell roughly 2.6% after weaker fourth-quarter deliveries left it trailing Chinese rival BYD in global battery-electric vehicle sales. BYD said last Thursday that sales of its battery-powered cars rose nearly 28% to 2.26 million units in 2025, while vehicle deliveries at Tesla dropped 8% year on year to 1.64 million vehicles delivered in 2025.

Trump’s Fed candidate criticises slow rate cuts

White House economic advisor Kevin Hassett said on Tuesday that the Federal Reserve is lagging other central banks in reducing interest rates, despite US gross domestic product expanding at an annualised 4.3% pace in the third quarter compared with market forecasts for weaker growth. Hassett, seen as a frontrunner to replace Fed Chair Jerome Powell when his term ends in May, argued that the artificial intelligence boom is simultaneously supporting growth and dampening inflation, and attributed around 1.5 percentage points of the latest growth figure to President Donald Trump’s tariffs narrowing the US trade deficit. The Fed cut its key rate by a quarter point earlier this month, its third reduction this year, but signalled a slower pace of easing ahead, with three governors dissenting and Powell describing the move as a "close call". Trump, who has repeatedly criticised Powell for not cutting more aggressively, has said he will soon nominate a new chair who strongly favours significantly lower rates. However, Hassett has stressed that Fed independence remains important.

European stocks rise on first trading day of the year

European equities advanced on Friday, with the EuroStoxx 50 closing about 1% higher at 5850.38 points, and the pan-European Stoxx 600 closing about 0.7% higher after gaining 16.7% last year. Semiconductor equipment maker ASML was among the strongest performers (+7%) after the US government granted Taiwan Semiconductor Manufacturing Company a one-year license to import US chipmaking tools into its Nanjing facilities.

Corporate and economic calendar

Corporate data in focus: There is no major corporate news scheduled today.

Economic data in focus: Swiss Purchasing Managers’ Index and Swiss retail sales (08:30), Sentix investor confidence for the euro-area (10:30), US ISM Purchasing Managers’ Index Manufacturing (16:00).

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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.