World shares gain as Trump orders blockade of oil tankers to Venezuela

Shares advanced on Wednesday in Europe and Asia as strong buying of technology shares helped lift some benchmarks, while the price of US crude briefly surged more than 2 per cent after President Donald Trump ordered a blockade of all “sanctioned oil tankers” into Venezuela.

Trump’s move followed the seizure by US forces last week of an oil tanker off Venezuela’s coast, an unusual move that followed a buildup of military forces in the region as his administration ramps up pressure on the country’s authoritarian leader Nicolás Maduro.

The future for the S&P 500 edged 0.1 per cent higher and that for the Dow Jones Industrial Average was virtually unchanged. In Germany, the DAX added 0.3 per cent to 24,138.73, while the CAC 40 in Paris was up 0.1 per cent to 8,115.18. Britain’s FTSE 100 surged 1.4 per cent to 9,817.65. Tokyo’s Nikkei 225 gained 0.3 per cent to 49,512.28 as traders awaited a decision on an interest rate hike by the Bank of Japan later in the week.

Adding to expectations for a rate hike, Japan reported its exports rose 6 per cent in November from a year earlier, as shipments to the US rose for the first time since March. A trade deal with the Trump administration that set tariffs on imports from Japan at a baseline rate of 15 per cent, down from the initial plan for a 25 per cent helped boost exports of cars and chemicals, among other key manufactured goods.

Hong Kong’s Hang Seng climbed 0.9 per cent to 25,468.78, while the Shanghai Composite index jumped 1.2 per cent to 3,870.28. In South Korea, the Kospi advanced 1.4 per cent to 4,056.41, lifted by computer chip maker SK Hynix, which gained 4 per cent, and a 5 per cent jump for Samsung Electronics. Australia’s S&P/ASX 200 gave up 0.2 per cent to 8,585.20.

On Tuesday, US stocks drifted through a mixed day of trading after reports on the US economy did little to clear up uncertainty about where interest rates may be heading. One report said the US unemployment rate was at its worst level since 2021 in November, but employers also added more jobs last month than economists expected.

A separate report, meanwhile, said an underlying measure of strength for revenue at US retailers grew more in October than economists expected. The S&P 500 slipped 0.2 per cent, staying a bit below its all-time high set last week. The Dow Jones Industrial Average dipped 0.6 per cent and the Nasdaq composite rose 0.2 per cent.

The varied economic data left intact traders’ hopes that the Federal Reserve may continue to cut interest rates in 2026. What the Fed does with interest rates is a top driver for financial markets because lower rates can boost the economy and prices for investments, even if they also may worsen inflation. A report coming on Thursday will show how bad inflation was last month, and economists expect it to show prices for US consumers continue to rise faster than anyone would like.