London (AFP) – Oil prices climbed and stock markets hit new heights Tuesday as investors tracked developments surrounding crude-rich Venezuela, as well as the outlook for the global economy. The United Nations voiced deep concern over the dramatic US operation in Venezuela, warning that it clearly “undermined a fundamental principle of international law.”
“States must not threaten or use force against the territorial integrity or political independence of any state,” Ravina Shamdasani, spokeswoman for the UN rights office, told reporters in Geneva. Oil prices have experienced choppy trading since the surprise US raid Saturday on Caracas that saw Venezuelan president Nicolas Maduro and his wife taken to New York. They pleaded not guilty to drug trafficking and other charges at a court hearing on Monday, where a judge ordered them to remain behind bars until the next hearing due March 17.
While Venezuela sits on about a fifth of the world’s oil reserves, observers pointed out that a quick ramp-up of output would be hamstrung by several issues, including its creaking infrastructure, low prices, and political uncertainty. “With the country pumping less than one percent of the world’s oil after years of underinvestment, any major near-term disruption looks more bark than bite,” Matt Britzman, senior equity analyst at Hargreaves Lansdown, said Tuesday.
Brushing off geopolitical concerns, some major stock markets have begun the new year with all-time highs, having already smashed records in 2025. Seoul rose more than one percent Tuesday to top 4,500 points for the first time, helped by another strong rally in chip giant SK hynix. That came after the Dow ended at a record high Monday on Wall Street, boosted by a rally of technology titans Amazon and Meta. London’s benchmark FTSE 100 index reached a new high Tuesday above 10,000 points, with investors expecting more cuts to British interest rates to bolster growth in 2026.
“Global equities are likely to keep looking through the geopolitical shock unless it threatens the broader supply chain or tightens financial conditions, because geopolitics has become a persistent feature rather than a surprise,” said Charu Chanana, chief investment strategist at Saxo Markets. “Equities can continue grinding higher if earnings expectations, liquidity, and rate expectations remain supportive, especially in tech,” she added. Shares in Nvidia climbed 1.1 percent after the world’s most valuable company unveiled its latest AI platform the previous evening.
Wall Street opened mixed, with the Dow dipping from its record close but quickly stabilizing. Traders are awaiting key US jobs data due Friday for clues on the outlook for interest rates. The Federal Reserve is expected to keep cutting American borrowing costs this year, but how many times remains unclear.
– Key figures at around 1340 GMT –
Brent North Sea Crude: UP 0.7 percent at $62.20 per barrel
West Texas Intermediate: UP 0.7 percent at $58.72 per barrel
New York – Dow: FLAT at 48,966.58 points
New York – S&P 500: UP 0.1 percent at 6,910.63
New York – Nasdaq Composite: UP 0.2 percent at 23,448.82
London – FTSE 100: UP 1.2 percent at 10,121.46
Paris – CAC 40: UP less than 0.1 percent at 8,216.11
Frankfurt – DAX: UP 0.3 percent at 24,954.31
Tokyo – Nikkei 225: UP 1.3 percent at 52,518.08 (close)
Hong Kong – Hang Seng Index: UP 1.4 percent at 26,710.45 (close)
Shanghai – Composite: UP 1.5 percent at 4,083.67 (close)
Euro/dollar: DOWN at $1.1705 from $1.1714 on Monday
Pound/dollar: DOWN at $1.3517 from $1.3525
Dollar/yen: UP at 156.43 yen from 156.31 yen
Euro/pound: DOWN at 86.56 pence from 86.57 pence
© 2024 AFP
