An eye on ‘global economic instability’ as shares slumps, tensions intensify

Amid global tensions escalating upon oil reserves, crude futures slid and shares in Asia retreated as markets grappled with the ramifications of the political upheaval in Venezuela and the fate of its petroleum reserves.

As reported by Reuters, oil prices extended their slide after U.S. President Donald Trump said Venezuela will be “turning over” up to 50 million barrels of oil to be sold at its market price following the toppling and capture of the nation’s leader.

According to recent reports, Japanese market shares slid sharply, while gold and industrial metals remained near record levels.

Moreover, the yen rallied as geopolitical tensions from South America to China took center stage while investors awaited data in the United States for clues about the timing of potential interest rate cuts by the Federal Reserve.

While commenting about the latest upheaval in Venezuela, CEO of investment platform in Australia and New Zealand Michael McCarthy said, “The most likely outcome is a boost to the global economy because of that oil” and “clearly it’s a negative element for the oil price itself, but energy costs are key to your global economic outlook.”

He further added that, “The flip side to this is that the increase in uncertainty for the geopolitical outlook might overwhelm any positive economic benefits.”

An eye on ‘global economic situation’

Crude oil, gold, silver, and base metals, among other commodities shares, slumped as geopolitical tensions increased globally.

Current market update informs that U.S. crude fell 1.66% to $56.18 a barrel and Brent slumped to $59.94 per barrel, down 1.25% on the day.

MSCI’s broadest index of Asia-Pacific shares outside Japan sank 0.6%. Japan’s Nikkei stock index slid 1.1%.

While, Australia’s S&P/ASX 200 index, heavily weighted by commodity producers, climbed 0.2%, Hong Kong’s benchmark Hang Seng sank 1.3%, giving back some gains after a three-day advance.

On the other hand, in European equity markets, the pan-region Euro Stoxx 50 futures were up 0.05%, German DAX futures rose 0.2%, and FTSE futures slid 0.24%.

U.S. stock futures, the S&P 500 e-minis, were also down to 0.04%.

The U.S. President said on Tuesday January 6,2026 that Caracas and Washington have reached a deal to export up to $2 billion worth of Venezuelan crude to the United States.

The key impact follow a weekend strike in Venezuela as well as comments by the White House that the U.S. was looking at options to acquire Greenland and the use of the U.S. military toward that goal was “always an option.”

The situation reflects, Venezuelan President Nicolas Maduro remains in a New York jail awaiting drug charges, while opposition leader Maria Corina Machado has hinted for her return to lead the country.

As reported, the dollar index, which measures the greenback against a basket of currencies, eased 0.06% to 98.55, trimming its 0.2% gain on Tuesday, while the euro was steady at $1.1691, while the yen strengthened 0.2% to 156.42 per dollar.

Stocks in Tokyo were weighed down after China announced the ban on exports of dual-use items to Japan that can be used for military purposes, Beijing’s latest move in reaction to a remark by Japanese Prime Minister Sanae Takaichi about Taiwan.

On the contrary, metals like copper (Cu) soared to a record high in the previous session, while nickel (Ni) jumped more than 10% as supply concerns spurred gains in key industrial resources.

Key takeaways

Looking ahead, the key U.S. monthly employment report on Friday will likely influence the market’s monetary policy expectations, which are currently pricing in two more Fed rate cuts this year.

Ahead of that are the JOLTS survey and ADP private payrolls on Wednesday, as the Asian trading day’s data showed that Australian consumer prices rose by less than forecast in November, and core inflation slowed slightly.

A private sector survey in Japan showed the service sector expanded last month at its slowest pace since May 2025.

Spot gold fell 1.1% to $4,448.29 an ounce. Copper tumbled 1.34% to $13,060.50 a ton.

In cryptocurrencies, bitcoin also fell 0.8% to $92,496.86, and ether declined 0.8% to $3,247.70 in the wake of recent global tensions.

According to financial experts, it is too early to forecast the economic stability amid ongoing worldly crises.