Global Markets Steady Amid U.S. Tensions with Venezuela
Global markets showed resilience as stocks rose and oil prices steadied following the U.S. capture of Venezuelan President Nicolas Maduro. Despite geopolitical uncertainties, investors focused on upcoming economic data in the U.S. Safe-haven assets, like gold, saw increased demand, reflecting caution amid political tensions.
Global markets exhibited calm on Monday despite geopolitical tensions following the U.S. capture of Venezuelan President Nicolas Maduro. Stocks in Europe and Asia rose, while U.S. futures showed gains. The STOXX benchmark of Europe's top companies increased by 0.3%, with Asia-Pacific shares reaching record highs. Oil prices experienced minor fluctuations, impacted by concerns over disruptions in Venezuela's oil-producing region.
U.S. President Donald Trump stated Venezuela is under temporary American control, with potential for further military strikes if cooperation isn't achieved. This development added geopolitical risks, influencing defence stocks, which saw gains. Brent crude prices rose slightly, maintaining a narrow range. Investors awaited key economic data in the U.S., overshadowing immediate considerations of the Venezuelan situation.
Amid heightened geopolitical instability, safe-haven assets like gold and bonds saw increased demand. Gold prices rose by 2%, while German and U.S. bond yields held steady. Investors maintained focus on U.S. economic data releases, with the dollar index strengthening over a six-day rally. Cryptocurrency prices also experienced gains, contributing to diverse market movements.
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