Market Reaction: U.S. Actions in Venezuela Impact Global Trade and Commodities

Oil prices dropped following U.S. President Trump's plan to refine Venezuelan oil, causing global trade tension especially in commodities. Stock markets showed mixed responses, with investors awaiting December's U.S. employment report. Market reactions were also influenced by Trump's actions affecting global trade dynamics with Caracas and China.

Oil prices fell on Wednesday due to U.S. President Donald Trump's intention to refine and sell Venezuelan crude, stirring global market concerns. The U.S. seized a Russian-flagged tanker linked to Venezuela as Trump aims to control oil flows and influence Caracas's socialist government.

On Wall Street, U.S. stock indexes displayed mixed reactions. While the Dow and S&P 500 declined, the Nasdaq went up. Despite market turbulence from the U.S.-Venezuelan scenario, global stocks reached record highs earlier in the week.

Commodities reacted starkly to Trump's moves, with U.S. crude and Brent prices dropping. Copper and nickel also saw significant declines. Meanwhile, the dollar index rose slightly amid economic data analyses and anticipation for further developments on the U.S. employment front.

(With inputs from agencies.)