Gold mining and defence stocks led the FTSE 100 higher on the second day of trading in 2026 as investors responded to the US seizure of Venezuelan president Nicolás Maduro on Saturday.
Crude oil prices dipped 0.2% as traders considered the implications for global supply following an inconclusive meeting by members of the OPEC oil-producing countries yesterday.
Although US president Donald Trump partly justified the controversial intervention on gaining access to Venezuela’s large oil reserves, analysts said it would take years of heavy investment to repair the country’s damaged energy infrastructure.
UK oil majors Shell (SHEL) and BP (BP), which reportedly have small stakes in Venezuelan offshore gas fields, were broadly unchanged, although their US counterparts like Chevron are likely to rally when Wall Street reopens this afternoon.
Maduro is due to appear in a New York court today in relation to drug trafficking charges, which he denies.
Gold extended its spectacular advance. The precious metal, viewed as a safe haven in troubled times, soared 65% last year. It gained a further 2.4% to $4,433 an ounce today in response to the ratcheting of geopolitical tensions.
That helped miner Endeavour Mining (EDV) rally 4.7% to the top of the FTSE 100. Its shares have leaped 162% in the past year, demonstrating how miners have worked as leveraged plays on gold’s advance.
After notching up an impressive 21.5% return in 2025, the UK blue-chip index continued its positive new year start, up 0.2%, or 19 points, at 9,970.
Defence contractors BAE Systems (BA) and Babcock (BAB) rallied over 4% as the US escalation in Venezuela looked certain to encourage more military spending.
Trump’s attempt to take control of Venezuela is said to be led by the Pentagon’s desire to counter the growing influence of China and Russia in the country. The likely breach of international law raises questions over the White House’s attitude to both the Ukraine and Taiwan, further unsettling relations between the global superpowers.
With smaller and mid-cap stocks remaining largely on the sidelines, the FTSE All-Share index added just six points to 5,364.
There were bright spots outside the FTSE 100, however.
Seraphim Space (SSIT), one of the best performing investment trusts last year delivering a total return of 121% on the back of a string of military and security contracts for its portfolio companies, jumped 9.5%, or 12p, to 139p. That’s an all-time high for a listed fund that hit 128p shortly after launch in 2021 before tumbling to 26p two years later.
Auction Technology Group (ATG) was propelled 19% higher to 322p after the online auctioneer revealed it had rejected eleven takeover bids by investment firm FitzWalter, its largest shareholder, over the past four months. The latest, received on 23 December, valued ATG at 360p per share in cash.
