ASX trading flat after early rise following Venezuela strikes
Staff Reporters
Updated ,first published
Australia’s stock market pared earlier gains, trading flat at midday as energy and major miners tried to offset declines in the country’s technology and retail stocks.
The ASX was up just 5 points, or 0.06 per cent, to 8733 at 1pm, marking a slow start to the first full trading week of the new year. Only four of the stock market’s 11 sectors are in the green.
Despite the dramatic events in Venezuela over the weekend that led to a drop in oil prices, energy stocks led the rise. Woodside led with a gain of 1.12 percent, while Santos and Ampol increased by 0.5 percent and 0.6 percent, respectively. Brent crude oil prices started the day with a decline, but rose by 0.3 percent to $60.9 per barrel by noon.
Non-oil energy companies also benefited; Uranium miner Paladin gained 7.9 percent as one of the index’s best performers, while fellow uranium extractor NexGen gained a similar amount. The performance of uranium miners is linked to uranium prices, which remain high due to increased demand for nuclear energy from data centres.
The country’s major miners also posted gains across the board; BHP was up 1.2 percent, Fortescue was up 1.1 percent and Rio Tinto was up 1.25 percent. Gold miner Northern Star rose 1 percent after falling 7 percent on Friday as it warned it would produce 13 percent less gold this financial year.
Technology stocks were the main driver of the stock market this morning; The overall sector fell 2.3 percent, following declines at Wisetech (3.6 percent), XERO (2.8 percent) and Technology One (2 percent). Consumer goods company Wesfarmers also fell 0.5 percent.
The financial sector was broadly flat, with CBA down 0.2 per cent, but Westpac (up 0.45 per cent), ANZ (up 0.6 per cent) and NAB (up 0.3 per cent) growing.
The Australian dollar traded slightly higher at around 66.7¢.
Abroad, the first trading week of the year could bring the U.S. stock market out of its winter holiday slumber as investors analyze rapid developments in Venezuela and monthly employment data emerges.
Stocks fell in the final session of 2025, and the benchmark S&P 500 index posted a monthly loss in December. But the index is still climbing more than 16 percent in 2025, when it posted double-digit percentage gains for the third consecutive year, while the Cboe Volatility index was just above yearly lows.
Trading volumes were weak at the end of 2025, but the new year could get off to an eventful start.
After the weekend, when US forces captured Venezuelan President Nicolás Maduro and US President Donald Trump said that the country would be under temporary American control, investors said that such developments in the oil-rich South American country increased concerns about geopolitical risks and that any volatility in oil prices would be reflected in assets.
Investors also expect more drama with the U.S. Supreme Court decision on Trump’s tariffs as well as the selection of a new Federal Reserve chairman. Corporate earnings season is also approaching in the United States.
In the first session of 2026 on Friday, the S&P 500 posted a slight gain as semiconductor stocks rebounded.
Matthew Maley, chief market strategist at Miller Tabak, said the indicator is hovering around late-October levels, although it is near record highs.
“The market is looking for direction,” Maley said. “We’re breaking out of those ranges, and that’s going to give people either a lot of confidence or a lot of concern, depending on the direction of the breakout.”
Jobs data to be released on Friday could shake things up in both cases. Concerns about labor market weakness have led the Federal Reserve to cut interest rates at each of its last three meetings in 2025; The central bank is trying to balance the goals of full employment and controlling inflation.
Low rates have supported stocks, but the scope of additional cuts in 2026 is unclear. Fed officials were divided over the path of monetary policy at the last meeting in December. Inflation remains above the Fed’s annual target of 2 percent.
“The softening in the labor market gave the Fed really good cover to change its perspective on lowering rates,” said Eric Kuby, chief investment officer at North Star Investment Management in Chicago.
At the same time, investors are wary that an overly weak report could signal more economic concerns than markets currently expect.
Reuters
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