Equity markets are mixed worldwide as geopolitical developments roil energy prices and risk sentiment despite fresh gains on U.S. benchmarks.
Global markets are navigating a turbulent start to 2026, with major equity benchmarks showing mixed performance as geopolitical tensions and energy price swings influence investor sentiment. Wall Street’s key averages — including the Dow Jones Industrial Average (DJIA) — hit fresh records earlier this week, buoyed by strong gains in industrials and financials. However, this optimism is being tempered globally as crude oil prices slide sharply following developments in Venezuela’s political landscape that have raised uncertainty over oil supply dynamics. Asian stock markets such as Japan’s Nikkei 225 and Hong Kong’s Hang Seng have retreated, while European indices show divergent moves amid cautious trading.
The energy sector has been a focal point after U.S. political actions surrounding Venezuelan oil have weighed on prices, highlighting how geopolitical risk can undercut the economic outlook even as U.S. markets rally. Safe-haven flows have lifted the Japanese yen, and commodities like gold have retraced some of their recent gains amid broader risk aversion. Investors are also parsing upcoming U.S. labor data, which could influence Federal Reserve policy expectations and underpin broader risk asset performance.
In regional markets, India’s benchmarks have seen notable declines over recent sessions, reflecting spillover from global sentiment and technical selling pressures. Elsewhere, precious metals — which started 2026 with strong rebounds — have eased slightly as markets adjust to risk and rate expectations.
