European Stocks Close Tuesday with Gains
The continent-wide Stoxx 600 index advanced 3.52 points, climbing 0.58% to settle at 605.28.
Germany's DAX 40 edged up 0.09%, establishing a fresh record close at 24,892.2 points. Britain's FTSE 100 surged 1.18%, also notching an unprecedented peak of 10,122.73. France's CAC 40 added 0.32% to reach 8,237.43, while Spain's IBEX 35 jumped 0.19% to a historic high of 17,647.1 points.
Italy's FTSE MIB index bucked the trend, sliding 0.2% to 45,753.43 points.
Global attention centered on dramatic weekend developments in Venezuela, where Washington's intervention and the detention of President Nicolas Maduro intensified international tensions.
Market strategists emphasized that geopolitical upheaval generates distinct volatility for capital markets. With Venezuela holding substantial petroleum reserves, traders are scrutinizing energy market responses and inflation trajectory implications. Heightened instability could dampen short-term risk appetite among investors, analysts warned. However, they observed that a regime transition potentially ending sanctions and enabling more efficient oil distribution would likely pressure energy costs and inflation downward.
Such conditions would enable the US Federal Reserve to implement more aggressive rate reductions than current projections suggest, analysts noted. Stock markets are already factoring in this potential monetary policy shift.
Economic data released Tuesday showed German consumer price growth moderated beyond forecasts, decelerating to 1.8% annually in December from November's 2.3% reading.
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