- FTSE 100 up 53 points at 10,004.57
- Wall Street surges
- Precious metals stocks in demand
- BAE and Babcock among the risers
And that's a wrap, folks
The fireworks on Wall Street helped light the blue touchpaper under UK stocks, with the Footsie ending the day above 10,000 and 31 points off its all-time high.
Over in NYC, traders hit the boost button as the Dow rocketed 700 points, leaving the S&P 500 and Nasdaq decisively in its wake.
US energy stocks led the charge, with Chevron and other oil companies rallying on expectations they could benefit from a revival of Venezuela’s oil sector.
Over the weekend, US forces moved to remove Venezuelan President Nicolás Maduro, with President Donald Trump saying the US would temporarily "run" the country while American companies invest billions to rebuild its ageing oil infrastructure.
3.07pm: Dow fizzes 500 points higher
Wall Street's rip-roaring start did nothing to lift the spirits in London, with the Footsie up a comparatively lacklustre 13 points at 9,965.
Across the Pond, the Dow Jones rose 522 points, or 1.2%, to 48,902, while the S&P 500 added 44 points, or 0.6%, to 6,902. The Nasdaq climbed 151 points, or 0.7%, to 23,386, and the Russell 2000 gained 26 points, or 1.1%, to 2,508.
US energy stocks led the charge, with Chevron (CVX) and other oil companies rallying on expectations they could benefit from a revival of Venezuela’s oil sector. Over the weekend, US forces moved to remove Venezuelan President Nicolás Maduro, with President Donald Trump saying the US would temporarily "run" the country while American companies invest billions to rebuild its ageing oil infrastructure.
“From a market perspective, what happened last Saturday in Venezuela means higher volatility in oil prices, risk premia creeping back into asset prices, and markets reacting to political shockwaves as investors return to their desks. But overall, the feeling is much more relaxed than that,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
Investors are also keeping a close eye on economic reports this week, starting Monday with the ISM manufacturing index for December at 10 am ET. The week will culminate with the December nonfarm payrolls report on Friday, which could offer further clues on the Federal Reserve’s next moves.
With the so-called Santa Claus rally period coming to a close, traders will be watching to see if the S&P 500 can hold its gains amid a week packed with geopolitical and economic catalysts.
12.44pm: US set for brisk start
Wall Street looks set to start the first full working week after the holidays firmly on the front foot.
US stock futures suggest traders will largely brush off geopolitical jitters after President Nicolás Maduro was captured in a US-led operation in Venezuela.
Instead, their focus will likely be on a fresh wave of enthusiasm for artificial intelligence, sparked by strong results from Nvidia suppliers and a bullish note on Taiwan Semiconductor Manufacturing Company.
S&P 500 and Nasdaq 100 futures climbed 0.4% and 0.75% respectively, while contracts for the Dow, representing the old economy, were up 0.7%.
Energy markets shrugged off the Venezuela turmoil, which threatens less than 1% of global oil output, with crude prices easing only slightly.
President Donald Trump said the US would temporarily oversee Venezuela during its “judicious transition,” though officials later softened the rhetoric. Meanwhile, gold and the dollar advanced on rising geopolitical tension, and 10-year Treasury yields edged lower.
Away from the geopolitical checkers game (probably not chess, given the player), investors are eyeing Friday’s US jobs data, which will offer the first clear economic signal of 2026.
Here in the UK, yes, stocks are up, but the Footsie appears range-bound amid a lack of enthusiasm reflected by lacklustre traded volumes.
11.30am: Blue-chips lose lustre as gold and silver glisten
The Footsie halved its earlier gains to trade 15 points higher at 9,966.61 as the blue-chip index as traders refused to be carried along with the wave of euphoria that bolstered Asia's markets earlier in the day.
On Wall Street, futures trading suggests a bright start, particularly on the tech-focused Nasdaq.
Back here at home, shares in precious metals producers Endeavour Mining and Fresnillo were among the strongest performers on the FTSE 100 on Monday as a sharp rise in gold and silver prices revived demand for mining stocks.
Gold climbed about 2.3% to roughly $4,431 an ounce, while silver surged nearly 4.4% to $76, as investors shifted money into assets seen as a store of value during periods of uncertainty.
The move followed the capture of Venezuelan president Nicolás Maduro by US forces over the weekend, an event that has heightened concerns about geopolitical instability.
For investors, precious metals often act as a refuge when political risk rises.
Gold and silver had already enjoyed a remarkable 2025, hitting record highs before easing back in the final days of the year.
Despite that late wobble, gold still delivered its strongest annual performance since 1979, rising more than 60% and reaching an all-time peak of $4,549.71 in late December.
The rally was driven by a combination of factors, including expectations that interest rates will continue to fall, large-scale buying by central banks and persistent worries about global economic and political tensions. The events in Venezuela have reinforced those themes, pushing prices higher again.
Mining stocks responded quickly. Endeavour Mining, which focuses on gold production in West Africa, also benefited as investors looked for direct exposure to the rising gold price. The stock was up 5%.
Fresnillo, one of the world’s largest silver producers, rose 3.7% as higher silver prices improved the value of future output.
By contrast, oil prices moved lower. Brent crude slipped around 0.8% to just over $60 a barrel as traders judged that the US intervention in Venezuela is unlikely to disrupt global energy supplies in the near term.
Venezuela currently produces only about 1% of the world’s oil, and analysts say years of underinvestment mean any recovery would be slow and costly.
Equity markets more broadly were firmer, suggesting investors see the immediate economic fallout as contained. Even so, the renewed bid for gold and silver underlines how quickly sentiment can shift when geopolitical risks return to the forefront.
10.10am: Defence stocks in demand
Defence stocks are among the best-performing names on the FTSE 100 this morning, with BAE Systems up around 4% and Babcock International ahead about 3.5%, as markets reacted to heightened geopolitical uncertainty following a dramatic US military operation in Venezuela.
American forces captured Venezuelan President Nicolás Maduro in a sharp escalation that investors and analysts say has thrust geopolitical risk back into the spotlight.
It was the most direct American military engagement in Latin America since the 1989 Panama invasion, and the bold move has sent a ripple of nervousness through global markets. Reuters
In the immediate aftermath, stocks have largely shrugged off concerns of economic disruption, with broader European and Asian markets rising and oil prices choppy, but investors are increasingly pricing in the potential winners from a more unsettled world.
Analysts note that defence companies often benefit when tensions rise because governments may boost military spending or prioritise security suppliers. Reuters
The elevated risk environment isn’t just about Latin America. Some commentators argue that the US action could have knock-on effects on other geopolitical hotspots.
While there’s no sign of imminent conflict in Europe or East Asia, the perception that Washington has signalled a willingness to use force more broadly may embolden rivals to press their own territorial claims, particularly around Ukraine and Taiwan.
That dynamic resonates with investors who track defence budgets and procurement cycles closely: if governments perceive increasing instability, they may prioritise spending on military platforms, equipment and services.
Firms like BAE Systems, which supplies combat aircraft, naval systems and armoured vehicles, and Babcock, a key provider of engineering and support services to defence and civil programmes, can see their valuations re-rated when risk premiums rise.
8.29am: Into the green
Not quite the start that had been anticipated, but still, we are in the green with Footsie opening 39 points higher at 9,990.34 after a brisk start to the first full working week of the year in Asia earlier.
Just to bring the mood down a little, the Times has commissioned its own poll of economists, which suggests unemployment could hit an 11-year high in 2026, with Labour's tax grab cited as the drag.
The paper polled 48 experts, who suggest the economy requires two rate cuts to kick-start growth and head off the worst excesses of Rachel Reeves' fiscal policies (if we are indeed describing the chaotic Budget mish-mash as such).
Strong start predicted
Hello, folks and good morning. Judging from the early flickering indicators from the spread betting firms, the Footsie is poised to open 61 points higher on Monday, pushing the index back above 10,000.
That impetus has come from a broad rally in Asian equities that extended last year’s gains in artificial intelligence and chipmakers.
The MSCI Asia Pacific Index jumped 1.5% to a record, led by tech heavyweights such as Samsung Electronics and Taiwan Semiconductor Manufacturing Company.
Despite heightened geopolitical tension following a US military intervention in Venezuela, global markets remained upbeat.
Gold rose 2%, silver surged nearly 5%, and US equity futures pointed higher. Investors are doubling down on tech stocks, with analysts calling AI the most dominant factor in the markets right now.
Oil prices wavered and the dollar gained, but risk appetite held firm.
Venezuela’s oil infrastructure appears largely intact, even as Washington signals plans for deeper involvement. Meanwhile, copper rallied and bitcoin climbed 1.3%, underlining the market’s risk-on mood to start the year.