ASX set to open higher; Wall Street gains after US raid on Venezuela

The Australian sharemarket is set for a strong start to trading on Tuesday after US stocks headed higher overnight, as investors seemed largely unfazed by the geopolitical risks from America’s capture of Venezuela’s President Nicolas Maduro. Oil prices rose, along with gold.

ASX futures were up 32 points, or 0.4 per cent, to 8750, pointing to gains when the market opens after a stagnant session on Monday, where the S&P/ASX 200 ended flat. The Australian dollar traded at US67.16¢ as of 8.06am AEDT.

Investors’ eyes will be on BlueScope after the nation’s biggest steelmaker confirmed it has received a $13 billion takeover bid from billionaire Kerry Stokes’ industrial and media group SGH Ltd and US steelmaker Steel Dynamics. The pair offers $30 in cash per share, 23 per cent above the stock’s closing price last night. Oil giants Woodside and Santos and gold miners will also be in the spotlight following the price gains for their products on commodity markets.

Wall Street had a strong session overnight, which bodes well for the Australian market.Credit: Bloomberg

Stocks closed higher on Wall Street overnight, led by a mix of energy companies and banks. The S&P 500 rose 0.6 per cent and the Nasdaq composite added 0.7 per cent, with tech-focused megacaps such as Amazon and Tesla among the gainers. The Dow Jones Industrial Average rose 1.2 per cent.

Crude oil prices advanced after US forces captured Venezuelan President Nicolás Maduro in a weekend raid, with President Donald Trump’s plan for US oil companies to help rebuild Venezuela’s oil industry sparking a rally in oil stocks. Chevron surged 5.1 per cent, Exxon Mobil rose 2.2 per cent and ConocoPhillips rose 2.6 per cent for some of the strongest gains in the US market.

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The price of US crude jumped 1.8 per cent to $US58.37 per barrel. The price of Brent crude, the international standard, rose 1.7 per cent to $US61.83 per barrel.

After years of neglect and international sanctions, Venezuela’s oil industry is in disrepair. It could take years and major investments before production can increase dramatically. But some analysts expect its current output of about 1.1 million barrels a day could double or triple fairly quickly.

Big banks also made solid gains. JPMorgan Chase rose 2.6 per cent and Bank of America jumped 1.6 per cent.

Wall Street is also watching the technology sector as the industry kicks off its annual CES trade show in Las Vegas. Nvidia slipped 0.4 per cent, while Google added 0.4 per cent.

Investors are particularly focused on advancements in artificial intelligence, or AI. The sector led the broader market to a series of records in 2025 on expectations that AI will continue to drive advancements and profits for a wide range of technology companies. The latest updates on AI from influential technology companies could help shed more light on whether the big investments are worth the potential financial risks.

Companies like Nvidia have been heavily investing in the technology, while investors on Wall Street have made those companies among the most valuable in the world.

Gold gained 2.6 per cent and the price of silver soared 7.9 per cent. Such assets are often considered safe havens in times of geopolitical turmoil. The metals have notched record prices over the last year amid lingering economic concerns brought on by conflicts and trade wars.

Treasury yields fell in the bond market. The yield on the 10-year US Treasury fell to 4.16 per cent from 4.19 per cent late on Friday. The yield on the two-year Treasury, which moves more closely with expectations for what the Federal Reserve will do, fell to 3.46 per cent from 3.48 per cent late on Friday.

Wall Street will get several economic updates this week that will also be watched by the Fed as it determines interest rate policy.

The central bank’s biggest focus will be on reports on the US job market later this week, which include updates for job openings and overall employment. The Fed has been weighing a slowing job market against risks for rising inflation as it decides whether to cut interest rates. It cut its benchmark rate three times late in 2025, but inflation has remained above its 2 per cent target and that has made the Fed more cautious.

Wall Street still expects the Fed to hold rates steady at its upcoming meeting later in January.

_AP, with Bloomberg

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