European stocks open higher as traders track Venezuela developments – CNBC
LONDON — European stocks preliminarily closed in positive territory on Monday as global markets react to the U.S.’ overthrow of Venezuelan leader Nicolas Maduro.
The pan-European Stoxx 600 was trading 0.9% higher at the closing bell in London, with most major bourses in positive territory and sectors mixed.
Global financial and oil markets are reacting to dramatic developments in Venezuela over the weekend, with the U.S. launching strikes on the Latin American country before capturing President Maduro and his wife, Cilia Flores.
Maduro and Flores were flown to New York following the operation Saturday and were indicted on drug-trafficking charges.
President Donald Trump said in a news conference on Saturday that the U.S. would “run” Venezuela “until such time as we can do a safe, proper and judicious transition.”
U.S. Secretary of State Marco Rubio appeared to walk back those comments on Sunday, however, noting that Washington would use leverage to meet policy goals. He also did not say the U.S. would govern Venezuela directly.
European defense stocks were among the key gainers in early trade Monday. Shares in Rheinmetall advanced 9.3% as Hensoldt AG traded almost 8.2% higher and Renk notched 8%. Leonardo rose 6.3%. Overall, the Stoxx Europe Aerospace and Defense Index rose to its highest level since October 3, gaining 4%.
Among the other big movers were Swiss industrial valve maker VAT Group, which was up 12.1%, leading the overall Stoxx 600 by the end of the session. Johnson Matthey, a U.K.-based manufacturer of specialist chemical products, active pharmaceutical ingredients, and battery technology, added 5.4%.
Oil prices inched up Monday as investors weighed whether Maduro’s ousting would impact oil shipments from OPEC member Venezuela, although the country produces less than 1 million barrels of oil per day.
Asia-Pacific markets hit record highs, fueled by defense stocks, while the U.S. stock market showed little risk to President Trump’s action in Venezuela as the Dow rallied.
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On the data front, it was a quiet day in Europe with only Spanish unemployment figures out.
— CNBC’s Liz Napolitano and Fred Imbert contributed to this market report.
