Today’s Outlook:
• US MARKET :At the close of trading on the NYSE, the Dow Jones Industrial Average rose 595 points (+1.2%), the S&P 500 gained 0.6%, and the Nasdaq Composite advanced 0.7%. The S&P 500 ended higher on Monday, driven by a rally in financial and energy stocks. The energy sector strengthened alongside rising oil prices, as investors assessed the U.S. attack on Venezuela and its broader geopolitical implications.
U.S. forces captured Nicolás Maduro in a weekend operation. President Donald Trump said the U.S. would manage Venezuela until a new leader is elected and would allow major U.S. oil companies to enter the country to develop its oil infrastructure. Oil prices rebounded by more than 1% after weakening earlier in the session, as investors evaluated the potential for increased global supply. Venezuela holds the world’s largest proven oil reserves, although production has declined due to aging infrastructure and strict U.S. sanctions.
Nevertheless, oil prices remain far from recovery after plunging 18% in 2025, their worst annual decline in five years, amid concerns over excess supply and weakening demand.
Meanwhile, market attention this week is focused on the release of U.S. December employment data. Economists expect job growth of around 57,000, down from 64,000 in November. Earlier, government-related spending cuts in October triggered the sharpest drop in nonfarm payrolls in nearly five years.
• EUROPEAN MARKET :The pan-European Stoxx 600 index closed up 0.9%, touching a new all-time high. At the country level, Germany’s DAX jumped 1.5%, France’s CAC 40 rose 0.2%, and the UK’s FTSE 100 gained 0.5%.
European stock markets rose on Monday, starting the first full trading week of 2026 on a positive note, driven by defense stocks amid renewed geopolitical concerns. Shares of major European defense companies—including Leonardo, Rheinmetall, Renk, Hensoldt, Kongsberg, Dassault Aviation, and BAE Systems—rallied broadly.
The gains followed a U.S. military operation in Venezuela over the weekend, during which U.S. forces captured Nicolás Maduro, who was subsequently flown to New York to face drug-trafficking charges. Investors are now monitoring the broader implications of U.S. strikes on Venezuela, after President Donald Trump claimed the U.S. would temporarily take control of the country.
• ASIAN MARKET : Asian stock markets surged on Monday, kicking off the first full trading week of the new year on a strong note, as technology and semiconductor shares extended a solid rally from late last year.
In Japan, the Nikkei 225 jumped 2.7% to a two-month high, while the broader TOPIX index climbed 2.1%, hitting a new record high of 3,486.0 points. In South Korea, the KOSPI surged nearly 3% to a record high of 4,434.27 points, with Samsung Electronics and SK Hynix gaining between 3% and 6%.
In China, the blue-chip CSI 300 rose 1.6%, while the Shanghai Composite gained 1.1%. However, a private survey showed that China’s services sector activity in December expanded at its slowest pace in six months, according to the RatingDog Services PMI.
• COMMODITIES :Oil prices strengthened in choppy European trading on Monday after the United States captured Venezuelan President Nicolás Maduro over the weekend and said it was taking control of the Latin American country.
Brent crude futures edged down 0.1% to USD 61.82 per barrel at 22:06 GMT, while West Texas Intermediate (WTI) crude rose 1.8% to USD 58.34 per barrel, after earlier declines.
At the same time, markets were digesting a weekend decision by OPEC+ to keep production levels unchanged. The decision was reached during a brief meeting that reportedly did not address rising tensions among some cartel members.
Tensions between Saudi Arabia and the United Arab Emirates escalated in late December amid a prolonged conflict in Yemen. Throughout 2025, OPEC+ steadily increased production, adding to market concerns over a potential supply glut and continued downward pressure on oil prices.
• INDONESIA :The JCI closed the first Monday of 2026 with a gain, reaching a new all-time high, up 1.27% to 8,859.19. The rally was supported by multiple attractive narrative catalysts for 2026, including capital increases for KBMI 1 banks (such as BNBA), higher core capital requirements for insurance companies, and oil-related stocks.
From a conglomerate perspective, stocks within conglomerate groups that saw limited inflows throughout 2025, such as those linked to seasonal catalysts from the Panin Group, are beginning to look attractive, particularly as other conglomerates have already experienced significant rallies.
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