Jan 8 (Reuters) – European shares deepened their pullback on Thursday as investors recalibrated bets following a strong start to the year, with geopolitical risks and major earnings updates in focus.
The STOXX 600 index fell 0.2% to 604.09 by 0813 GMT, poised for its second consecutive day in the red if current levels hold. The index had breached the 600-point mark for the first time earlier this week.
While market moves this week have suggested that investors are not overly concerned with the Venezuela fallout, a steady flow of headlines has added some unease, leaving traders split between buying and reducing risk.
On Wednesday, top U.S. officials said the country needs to control Venezuela’s oil sales and revenue indefinitely to stabilize its economy, rebuild its oil sector and ensure it acts in America’s interests.
Additionally, the U.S. seized two Venezuela-linked oil tankers in the Atlantic Ocean.
Amid the rise in geopolitical tensions, the STOXX aerospace and defense index rose for the fifth straight session to scale an all-time peak. It was last up 1.8%.
Meanwhile, shares of AB Foods fell 10.4%, hitting their lowest since April last year, after it warned of lower annual profit due to weak demand at its Primark chain in Europe and subdued U.S. sales at its food business.
Britain’s competition regulator will also fast-track its probe of the company’s deal to buy bread brand Hovis, it said on Thursday.
(Reporting by Niket Nishant in Bengaluru; Editing by Mrigank Dhaniwala)
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