Global Markets Surge on AI Optimism as Oil Prices Stabilize
Global stock markets opened the new year on a strong note, driven by renewed optimism in artificial intelligence and solid corporate earnings. Wall Street kicked off 2026 with record highs, fueled by gains in tech giants like Amazon and Meta, as investors piled into AI-linked investments. Meanwhile, oil prices held steady after a period of volatility triggered by the ouster of Venezuelan President Nicolas Maduro.
The focus among investors is shifting back to US monetary policy, with key economic data expected this week that could influence Federal Reserve interest rate decisions. Despite geopolitical tensions in Venezuela, the market has largely ignored these developments, showing resilience as analysts emphasize that global equities tend to look past short-term shocks unless supply chains or financial conditions are directly affected.
Asian markets also reflected this optimism. Tokyo, Hong Kong, Shanghai, Taipei, Singapore, and Jakarta all rose more than one percent, while Seoul topped 4,500 points for the first time, led by a strong rally in chip maker SK hynix. Hyundai grabbed headlines with the debut of its AI-powered humanoid robot, Atlas, which is set to work in a US plant by 2028, boosting investor confidence in the technology sector.
In Europe, London, Paris, and Frankfurt opened higher, continuing the momentum from record-setting closes on Monday. In Sydney, BlueScope Steel surged nearly 21 percent after confirming it is evaluating a US$8.8 billion joint takeover bid. Despite the gains in equities, oil prices slipped slightly, reflecting the ongoing supply glut and structural challenges in Venezuela’s energy sector.
Analysts remain optimistic about the outlook for 2026, particularly in technology and AI-focused sectors. “Equities can continue grinding higher if earnings expectations, liquidity, and rate expectations remain supportive, especially in tech,” said Charu Chanana, chief investment strategist at Saxo Markets. Investors are now closely watching upcoming US jobs and manufacturing data, which could further shape market sentiment in the months ahead.
source: punch