European Midday Briefing: Oil Prices Slide, Copper Hits Record High

MARKET WRAPS

Stocks:

European shares were mixed on Tuesday, with energy stocks rising despite a slide in crude prices as traders navigated uncertainty over developments in Venezuela.

Following the U.S. capture of Venezuela's President Maduro, Trump pledged American drillers would revive the country's crude production . Oil prices have been volatile as investors balance geopolitical risk with the threat of over supply.

"Developments over the weekend pose further downside risk to Venezuelan oil supply in the short term--and leave the potential for upside in the longer term," ING said.

"This would require significant investment in the domestic energy sector, which foreign companies may be reluctant to undertake unless there is a more attractive investment environment or some form of guarantee for investors."

The Venezuelan story is dominating the news, but clearly, the market does not see this as a major risk , according to Navellier & Associates. The year 2026 is off to a "very good" start, and the momentum is "clearly positive," it said.

Gold and silver were moving on an upward trend as investors looked for safety following the U.S. intervention in Venezuela.

Meanwhile, copper prices climbed to a record high, soaring above $13,000 a metric ton for the first time driven by concerns over tightening supply and tariff uncertainty in the U.S.

Economic Insight

In Europe, French inflation fell slightly in the last month of 2025, reinforcing the European Central Bank's view that the eurozone remains in a "good place" after keeping rates on hold in December. Inflation data for the eurozone as a whole will be released Wednesday.

Shares on the Move

London's miners rose in opening trade as precious metals and copper prices rose. Gold and silver have been winners from the U.S. intervention in Venezuela as investors seek refuge in safer assets.

U.S. Markets:

Stock futures edged down on Tuesday after the Dow Jones Industrial Average rose to a new high on Monday.

Investors are monitoring data this week for clues on the timing of the Federal Reserve's next interest-rate cut. Friday's U.S. nonfarm payrolls report is the main focus.

Forex:

The dollar stayed under pressure after Monday's weak U.S. manufacturing data caused the currency to reverse gains led by safe-haven flows.

Sterling rose to 16-week highs against the dollar and the euro after data showed an acceleration in U.K. food price inflation in December, reducing the prospect of further near-term interest-rate cuts.

Bonds:

Treasury yields rose, with investors apparently looking beyond the U.S.'s capture of Maduro over the weekend.

Eurozone government bond yields rose, tracking Treasurys, as investors shift focus back to data and bond supply and away from geopolitics.

Energy:

Oil prices edged down on supply worries and uncertainty.

Gas

European natural-gas prices continued to trade in a tight range after plunging in the previous session.

"While the weather in Europe has been colder than usual recently, forecasts indicate milder conditions later in the month," ING said. "LNG send-outs have been seasonally strong, which will help ease any supply concerns in the market. "

Metals:

Gold prices extended gains in early trading as investors turned their focus to a raft of key U.S. economic data this week for more cues on the monetary policy outlook.

"Gold is coming off its strongest annual performance since 1979, but in the near term, gold prices may face pressure from commodity index rebalancing that could prompt passive funds to trim positions following last year's record-breaking rally," MUFG said.

Gold chart

Comex gold futures were likely resuming their uptrend , based on the daily chart, RHB Retail Research said. The futures' latest price movements indicate that gold bulls are growing stronger, ever since the commodity crossed above the 20-day simple moving average.

Copper

Copper rose to a record high. Uncertainty surrounding U.S. tariffs has diverted a large volume of long-term import contracts toward the U.S., tightening supply elsewhere, Galaxy Futures said.

Iron

Iron ore was lower in early trading. Prices were likely to stay range-bound in the near term, according to Nanhua Futures.

EMEA HEADLINES

French Inflation Fell Slightly in December

French inflation fell slightly in the last month of 2025, reinforcing the European Central Bank's view that the eurozone remains in a "good place" after keeping interest rates on hold in December.

Consumer prices were up 0.7% compared with the same month a year prior, and against a 0.8% rise in November, EU-harmonized figures published by statistics agency Insee showed Tuesday.

AB InBev Buys Back 49.9% Stake in U.S. Metal Container Plants for Around $3 Billion

Beer giant Anheuser-Busch InBev said it agreed to repurchase a minority stake in its U.S.-based metal container plants for around $3 billion, taking back its share of the facilities that boost supply security.

The Belgian Budweiser brewer said Tuesday that it exercised the right to repurchase its 49.9% stake in the plants, which were held by a group of institutional investors led by Apollo Global Management.

Next PLC Lifts Outlook on Stronger-Than-Expected Year End

Next PLC raised its guidance for the 2026 fiscal year after the U.K. fashion retailer said it now expects to post year-end sales far ahead of its previous outlook.

Regarded as a bellwether for the U.K. retail sector, the group said total full-price sales for the nine weeks to Dec. 27 grew by 10.6% compared with its guidance for the fourth quarter as a whole of 7.0% growth.

U.K. Shop Price Inflation Rose in December on Higher Food Prices

U.K. shop and food price inflation ticked higher in December, when shoppers leaned into promotions to alleviate cost pressures, according to an industry report.

Annual shop-price inflation increased to 0.7% in December from 0.6% in November, according to the monthly shop-price index published by NielsenIQ and the British Retail Consortium trade association on Tuesday.

GLOBAL NEWS

Saudi Arabia Cuts Flagship Oil Price to Asia for Third Straight Month

Saudi Arabia lowered the price of its crude for Asian buyers for the third consecutive month, signaling caution as concerns over excess supply continue to weigh on global markets.

State-owned oil giant Saudi Aramco set the official selling price for February loadings of its flagship Arab Light crude to Asia at $0.30 a barrel above the Oman/Dubai average, down from $0.60 in the prior month. The price is seen as a key indicator of the kingdom's outlook on regional demand.

French Inflation Fell Slightly in December

French inflation fell slightly in the last month of 2025, reinforcing the European Central Bank's view that the eurozone remains in a "good place" after keeping interest rates on hold in December.

Consumer prices were up 0.7% compared with the same month a year prior, and against a 0.8% rise in November, EU-harmonized figures published by statistics agency Insee showed Tuesday.

Wall Street Investors Who Stuck With Venezuela Are Poised for a Payday

The ouster of Nicolás Maduro is rewarding investors who spent years betting on a Venezuela comeback.

Investment firms including Fidelity and T. Rowe Price have been stuck holding tens of billions of dollars in underwater Venezuelan bonds that the government and state-owned companies such as Petróleos de Venezuela borrowed years ago. U.S. investors once held about $50 billion of Venezuelan debt, before many sold and wrote off the losses after the first Trump administration isolated Venezuela through sanctions.

Maduro's Capture Deals Heavy Blow to Cuba's Vaunted Intelligence Service

For decades, Cuban intelligence agents were Cold War stars, dismantling plots to assassinate Fidel Castro, recruiting senior U.S. government officials and protecting heads of state from Angola to Panama.

The capture of Venezuelan strongman Nicolás Maduro-one of the Cuban intelligence services' most valuable charges-punctured its aura of invincibility. U.S. elite forces descended on Maduro's compound at around 2 a.m. local time Saturday, grabbing him and his wife before they could escape to a safe room, said Gen. Dan Caine, the chairman of the Joint Chiefs of Staff.

Maduro Declares His Innocence in First U.S. Court Appearance

Ousted Venezuelan President Nicolás Maduro pleaded not guilty to narcotrafficking charges during his arraignment in U.S. federal court Monday, defiantly telling a judge that he was still the head of his nation despite being whisked away by U.S. forces over the weekend.

CIA Concluded Regime Loyalists Were Best Placed to Lead Venezuela After Maduro

WASHINGTON-A recent classified U.S. intelligence assessment determined top members of Nicolás Maduro's regime-including Vice President Delcy Rodríguez-would be best positioned to lead a temporary government in Caracas and maintain near-term stability if the autocrat lost power, people familiar with the matter said.

The analysis by the Central Intelligence Agency was briefed to President Trump and shared with a small circle of senior administration officials, according to two of the people. It was a factor in Trump's decision to back Maduro's vice president instead of opposition leader and Nobel Peace Prize winner María Corina Machado, some of the people said.

Why Democrats Aren't Threatening Another Shutdown This Time

WASHINGTON-When Sen. Jacky Rosen (D., Nev.) joined a breakaway group of Democrats to help Republicans end a record-long government shutdown, she cited "unimaginable pain and suffering on working people," pointing to the loss of food aid and the snarling of air travel in her tourism-dependent state.

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January 06, 2026 05:17 ET (10:17 GMT)