European stocks’ momentum is waning as investors weigh profits and geopolitics

European shares extended their pullback on Thursday as investors recalibrated their bets after a strong start to the year, with geopolitical risks and big earnings updates in focus.The STOXX 600 index fell 0.2% to 604.09 at 08:13 GMT, and is set to be in the red for a second straight day if current levels hold. The index exceeded the 600 point mark for the first time earlier this week.

While this week’s market moves have suggested that investors are not overly concerned about the fallout from Venezuela, a steady stream of headlines has caused some discomfort, leaving traders divided between buying and reducing risk.

On Wednesday, top US officials said the country should control Venezuela’s oil sales and revenues indefinitely to stabilize its economy, rebuild its oil sector and ensure it acts in America’s interests.

In addition, the US seized two oil tankers linked to Venezuela in the Atlantic Ocean.

Amid the rise in geopolitical tensions, the STOXX ‍aerospace and defense index rose for the fifth straight session, hitting an all-time high. It was ‍last up⁠ 1.8%.

Meanwhile, shares of AB Foods fell 10.4% to their lowest level since April last year, after it warned of lower annual profits due to weak demand at its Primark chain in Europe and weak US sales at its food business.

Britain’s competition authority will also accelerate its investigation into the company’s deal to acquire bread brand Hovis, it said on Thursday.