European shares pause rally as traders assess Venezuela’s fallout ahead of data

European stock prices held steady on Wednesday after a series of record closes, as investors took a breather to digest the latest developments between the US and Venezuela ahead of a batch of new economic data.The STOXX 600 index rose 0.1% at 0804 GMT, a day after hitting a record high. The benchmark in Germany rose 0.44%, while the indexes in Spain and Italy were flat. All three had reached record highs a day earlier.

While markets have largely looked past the flare-up in global geopolitical risks, Wednesday’s pause could be a healthy reset as investors weigh the impact of U.S. actions in Venezuela.

Oil prices fell after US President Donald Trump said the United States had reached a deal to import $2 billion worth of Venezuelan crude, a move expected to boost supplies.

Shares of British energy sector heavyweights Shell and BP fell 1.8% and 2.9% respectively.

Traders also face a busy data role, which will be critical in shaping the macroeconomic narrative. The US Labor Department’s Job Openings and Labor Turnover Survey, also known as the JOLTS report, will be released on Wednesday.

Among individual movers, Nestle fell 1.2%, widening losses a day after the company said it had recalled some batches of its infant formula products due to possible contamination with a poison that can cause nausea and vomiting. (Reporting by Niket Nishant in Bengaluru; Editing by Subhranshu Sahu)