Daily Markets: Asia Gains, Copper Surge & Venezuela Oil News

06 Jan 26 - Daily Market Updates

Global mood

Risk appetite stayed resilient overnight. Asia extended its New Year upswing, led by Hong Kong, as investors rotated toward markets with lower valuations and improving growth signals. Europe opened slightly firmer, while US equity futures were broadly flat.
The US dollar remains soft against major peers, a trend many investors expect could continue if global growth broadens and US rate differentials narrow.
Crypto eased from recent highs, while industrial metals stayed supported.

Macro and policy

Washington signaled potential support for private-sector efforts to rebuild Venezuela’s oil sector following the recent change in leadership. Markets are assessing implications for heavy crude supply, US Gulf refiners, and the medium‑term path of sanctions policy.
Beijing introduced tighter controls on shipments to Japan with potential military end‑use, keeping attention on supply-chain security in electronics and advanced manufacturing.
Investor surveys continue to show optimism on US equities after multiple strong years, with growing debate about market leadership and the durability of AI‑related trades.

Equities

Asia: Rotational buying into North Asia and Hong Kong persisted, aided by discounted valuations and policy hopes. Mainland China shares were mixed, with defensives and exporters relatively steady.
Europe: Stocks edged higher at the open, with miners and industrials benefiting from firm metals prices. Energy shares were supported by geopolitics and crude’s bid.
US: Futures were little changed. Semiconductors remain in focus after updates from leading chipmakers on data‑center roadmaps and AI hardware competition. Select analog and embedded-chip names outperformed after upbeat guidance. M&A chatter in enterprise software added to single‑name dispersion.

Commodities

Copper extended its rally after clearing a major psychological threshold on the global benchmark, supported by tight refined supply, robust power-transition demand expectations, and talk of potential US trade measures on refined metal. The move has favored diversified miners and select smelter plays, while raising input‑cost questions for capital goods makers.
Crude traded with a modest bid as markets weighed Venezuela headlines alongside ongoing shipping and geopolitical risks. Product cracks and heavy‑sour differentials remain areas to watch if flows shift.
Gold was steady, balancing lower real yields against firmer risk sentiment.

FX and rates

The dollar drifted lower on a trade‑weighted basis. Higher‑beta FX and select Asia EM currencies benefited from improved risk tone and carry.
Sovereign yields were little changed in early trading. Primary markets were active: global dollar bond issuance just posted its busiest session in roughly a year, signaling healthy risk appetite and favorable funding windows.

Digital assets

Bitcoin eased modestly after recent gains. Broader crypto performance was mixed, with market attention rotating to liquidity conditions and regulatory developments.

Key themes we’re watching

Leadership and breadth: Can cyclicals and non‑US markets take the baton if mega‑cap tech momentum cools?
AI supply chain: Intensifying competition in accelerated computing, with implications for GPU vendors, memory, networking, and data‑center power infrastructure.
Commodities tightness: Copper’s squeeze highlights the interplay of trade policy, inventories, and capex cycles across miners and manufacturers.
Policy and geopolitics: Energy policy toward Venezuela, Asia export controls, and shipping lanes remain key swing factors for commodities and global trade.
Funding conditions: A robust start for primary debt markets supports the soft‑landing narrative; watch for duration appetite and pricing as issuance continues.

The day ahead

Data and events: Focus remains on global PMIs, US labor and inflation updates later this week, and central bank speakers for guidance on the timing and pace of policy easing.
Earnings: Early-cycle updates from chipmakers, cloud/data‑center suppliers, and select consumer names will inform views on 2026 growth and margins.

Portfolio considerations

Diversification across regions and factors can help if leadership rotates.
For equities, watch the balance between quality growth and cyclicals tied to industrial activity and metals.
In credit, strong new-issue demand favors active selection on structure and covenants as spreads remain tight.
Commodity users may consider hedging strategies given copper and energy volatility.

This material is provided for informational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or financial instrument. Markets are volatile; past performance is not indicative of future results. Consider your objectives, risk tolerance, and seek professional advice before making investment decisions. Market levels referenced are indicative and subject to change.

Disclaimer:

Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin.

Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand how Rolling Spot Contracts and CFDs work, and whether you can afford to take the high risk of losing your money.