European stocks are set to open broadly higher on Tuesday, reflecting improving global market sentiment as investors respond to recent geopolitical developments linked to Venezuela. Market confidence appears to be strengthening as traders weigh the implications of the U.S.-led removal of Venezuelan leader Nicolas Maduro and its potential impact on energy markets and global stability.
According to data from IG, the U.K.’s FTSE index is expected to open 0.4% higher, while Germany’s DAX is projected to jump by 3%. France’s CAC 40 is seen rising 0.2%, and Italy’s FTSE MIB is forecast to gain 0.25%, signaling a generally upbeat start across major European bourses.
Positive momentum has carried over from Monday’s trading session, when European markets closed higher and Wall Street posted strong gains. The Dow Jones Industrial Average ended at a record high after investors reacted to news of Maduro’s capture and comments from U.S. President Donald Trump encouraging American energy companies to invest in Venezuela’s oil-rich economy.
The market reaction suggests that investors are, for now, setting aside concerns over broader geopolitical fallout. Instead, there is renewed confidence in risk-on assets as the new year begins, supported by expectations of economic opportunity and policy-driven investment flows rather than prolonged instability.
Meanwhile, Asian markets were mixed on Tuesday, although defense stocks in the region extended gains for a second consecutive session as investors continued to assess geopolitical risks following the U.S. military action in Venezuela. In Europe, attention will also turn to key economic data releases later in the day, including inflation figures from France and Germany, as well as new car sales data from the U.K., which could further shape market direction.
source: cnbc