In Short:
– The U.S. captured Venezuelan President Nicolas Maduro on January 3, 2026, amid geopolitical tensions.
– Experts predict varied market impacts, emphasising complexities in Venezuela’s oil sector recovery.

The United States has announced the capture of Venezuelan President Nicolas Maduro following a military strike on January 3, 2026.

The intervention marks a significant escalation in geopolitical tensions, with accusations against Maduro including drug trafficking and illegitimacy in power.

President Donald Trump confirmed the operation, stating Maduro and his wife were apprehended and removed from Venezuela.Washington’s direct military engagement in Latin America has been rare since the 1989 invasion of Panama. Trump indicated in a later press conference that the U.S. would oversee Venezuela’s governance, with Secretary of State Marco Rubio involved in planning the next steps.

Economic experts provided varied opinions on the situation.

Market Impact

Jamie Cox of Harris Financial Group stated market reactions will likely remain muted pending the outcome of an OPEC meeting.

Helima Croft from RBC Capital Markets highlighted the complexities of rebuilding Venezuela’s oil sector post-conflict.

Brian Jacobsen from Annex Wealth Management expressed that the campaign was expected and could significantly unlock oil reserves.

Marchel Alexandrovich noted that geopolitical risks are increasingly influencing market dynamics, while Tina Fordham warned about the potentially messy nature of change in Venezuela despite optimistic outlooks.

In Short:
– World equities are expected to reach record highs in 2025, driven by anticipated Federal Reserve rate cuts and AI gains.
– The MSCI index gained nearly 21% in 2025, while the S&P 500 achieved its 39th record close this year.

Global equity markets ended 2025 on a historic high, capping off a year of extraordinary gains. The MSCI world equity gauge recorded an almost 21% year-to-date increase, while the S&P 500 closed at 6,932.05 on Christmas Eve—its 39th record close of the year. European shares also touched intraday records, as investors bet on continued Federal Reserve interest rate cuts and strong AI-driven growth.

Asian markets led the year-end surge, with Taiwan’s benchmark index hitting a record high of 28,832.55, fueled by gains from Taiwan Semiconductor Manufacturing. South Korea’s Kospi rose 2.2%, marking its best year since 1999. Across the region, investors placed big bets on artificial intelligence, overshadowing concerns about trade tariffs and economic uncertainty.

The U.S. Federal Reserve’s rate cuts provided further optimism for global markets. After lowering its main funds rate to 3.5%-3.75% in December, money markets are anticipating additional cuts in 2026. While gold dipped slightly, it still recorded its largest annual gain since 1979, and copper hit a new record high. Investors are balancing bullish AI exposure with safe-haven hedges, signaling cautious confidence as 2025 draws to a close.