Why did global stocks reach a new record high?

Global stocks hit a new record high primarily due to strong investor appetite for tech stocks and a general sentiment of looking past geopolitical concerns.

What is the impact of the Venezuela situation on markets?

The capture of President Nicolas Maduro increased geopolitical uncertainty, leading to a surge in gold and silver prices and positively impacting Venezuela's defaulted bonds.

What does the US manufacturing data suggest for the Federal Reserve?

The contraction in US manufacturing activity in December suggests a weaker economy, supporting the case for the Federal Reserve to consider easing monetary policy.

Home / Business and Economy / Global Stocks Hit New Highs Amidst Geopolitical Jitters

Global Stocks Hit New Highs Amidst Geopolitical Jitters

6 Jan

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Summary

Global stocks reached a new peak, buoyed by tech shares.
Gold and silver prices saw significant increases Monday.
US manufacturing activity shrank in December, hinting at Fed easing.

Global Stocks Hit New Highs Amidst Geopolitical Jitters

Asian stocks were poised for a positive opening, extending a record-setting trend for global equities as investors prioritized tech stocks over geopolitical anxieties. An MSCI gauge of global stocks reached an all-time peak, with the S&P 500 and Nasdaq 100 showing gains. This rally occurred alongside a significant rise in precious metals; gold prices climbed over 2% to exceed $4,400 an ounce, and silver prices increased by more than 5%, reflecting geopolitical uncertainty.

In the US, Treasury yields fell as a report indicated manufacturing activity contracted in December, the steepest decline since 2024. This data strengthens the case for potential Federal Reserve interest rate cuts. The dollar index experienced a slight dip after recent gains, while Bitcoin saw a modest advance. Brent crude oil prices also rose, with traders assessing the implications of the developments in Venezuela. Chevron and other US oil majors saw their shares trade higher following President Donald Trump's proposals for a US-led revitalization of Venezuela's industry.