Global Markets, U.S. Futures Nervy as Geopolitical Tensions Sour Sentiment

By Dow Jones Newswires Staff

Growing geopolitical tensions led to mixed performance in global markets and U.S. futures. President Trump's promise to bring 50 million barrels of Venezuelan oil to the U.S. brought oil prices--and energy stocks--down on oversupply fears, while a fresh war of words between China and Japan hit investor sentiment in Asia. Investors watch for jobs reports from the U.S., though Friday's nonfarm payroll print will provide a clearer clue on the timing of the Federal Reserve's next interest-rate cut.

--U.S. indexes were mixed premarket ahead of a busy day of jobs data. The Dow Jones Industrial Average gained 0.1% premarket after hitting a record high overnight, though futures for the S&P 500 dropped 0.1% premarket after reaching its own high. Momentum in technology stocks slipped across global markets, helping to drag the tech-heavy Nasdaq down 0.2% premarket.

--Japan's Nikkei 2205 fell 1.1% as energy and technology stocks retreated, with Tokyo Electric Power Company falling 7.3%. In Hong Kong, the Hang Seng index declined 0.9%, spurred on by gains for healthcare stocks, while China's benchmark Shanghai Composite gained 0.1%.

--European indexes opened mixed as gains for defense stocks were countered by falling energy stocks. The U.K. FTSE 100 opened down from Tuesday's record close--falling 0.25%--as oil major BP fell 2.75% and bank NatWest dropped 2.7%. Elsewhere, Milan's FTSE MIB rose 0.15% on defense gains, with Leonardo up 2.1% while ship builder Fincantieri gained 1.7%. The German DAX rose 0.5% on gains for Siemens and Bayer, among others. Spain's IBEX 35 dropped 0.2% as banks and energy stocks fell, while the French CAC 40 nudged down 0.05% as losses for energy and luxuries cancelled out defense gains.

--The DXY dollar index traded flat at 98.549 ahead of jobs data that will inform investors' expectations of the timing of the next Federal Reserve rate cut.

--U.S. Treasury yields traded lower in the Asian afternoon, reversing the previous day's moves amid caution ahead of labor market data. The two-year Treasury yield fell 1 basis point to 3.462%, while the 10-year yield declines 2 basis points to 4.158%.

--Eurozone government bond yields fell at the market open, extending the previous day's moves when below-forecast German inflation data Tuesday pointed to a likely decline in Wednesday's eurozone inflation figures, due at 1000 GMT. The 10-year Bund yield dropped 1.7 basis points to 2.828%, while other eurozone 10-year yields drop as much as 2 basis points. U.K. government bonds fell, with ten-year gilt yields dropping 4 basis points to 4.442%, a 20-day low.

--Bitcoin edged lower but remains above the key $90,000 level after a modest recovery since the start of the year. Bitcoin slipped 0.5% to $92,787 after reaching a seven-week high of $94,725 Monday.

--Oil prices fell in early trading after President Trump's latest comments on Venezuela. Brent crude was down 0.9% to $60.18 a barrel, while WTI fell 1.1% to $56.48 a barrel.

--Gold slipped in early trading as investors booked profits and turned their focus to key U.S. economic data due this week. Futures in New York were down 0.4% to $4,476 a troy ounce, moving inversely to the U.S. dollar. U.S. actions in Venezuela injected a fresh wave of volatility into global markets, boosting the appeal of safe-haven assets this week. Silver futures were down 1.5% to $79.83 an ounce, while platinum climbed 7.2% to $2,434 an ounce.

--Copper prices slipped in early trading but continued to hold above the $13,000-a-metric-ton mark amid concerns over tightening supply and tariff uncertainty. "The specter of U.S. copper tariffs remains a factor in the market because, whether or not they are implemented, we believe the elevated inventory in the U.S. is unlikely to be re-exported anytime soon if at all," said Sam Crittenden from RBC Capital Markets. Futures on the London Metal Exchange fell 1.4% to $13,066.50 a ton after reaching a fresh record Tuesday.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

January 07, 2026 04:32 ET (09:32 GMT)