Daily Market Report – January 5, 2026
The arrest of President Nicolas Maduro and the US military operation in Venezuela dominate market activities today. In Hong Kong, oil companies Petrochina 0857 and CNOOC 0883 have significantly fallen due to geopolitical tensions and uncertainties regarding Venezuelan oil supplies. In contrast, Chevron CVX, ExxonMobil XOM, and the oil services provider Halliburton HAL have risen sharply as Trump demands access for US oil companies in Venezuela. Trump wants to temporarily take over Venezuela ("will run Venezuela"). The US dollar and gold, as well as defense stocks primarily in Europe, benefit from the geopolitical uncertainty.
The Institute for Supply Management (ISM) reported today worse-than-expected data for the Manufacturing PMI, which fell from 48.2 in November to 47.9 in December, while economists had expected an almost unchanged value of 48.4 on average. The PMI is an important leading indicator as it reflects the expectations of purchasing managers. Market participants are now focusing on the labor market numbers that will be released on Friday. A cooling labor market - not least due to Trump's trade policy - could be seen as a warning signal for an economic downturn.
Until then, however, positive expectations prevail: LAM Research LAM, Applied Materials AMAT, and KLA Corporation KLAC are rising sharply today by over 5%. Shares of semiconductor equipment manufacturers benefit from semiconductor companies investing in data centers and production facilities. The growth stock Shopify SHOP is also gaining today. Technology and growth companies are once again in the interest of investors.