European Stocks Edge Higher as Investors Track Geopolitical Developments

European shares moved slightly higher on Tuesday as investors monitored fast-moving geopolitical developments, while overall risk appetite remained broadly resilient.

The pan-European Stoxx 600 rose 0.3% by mid-morning, with Germany’s DAX up 0.1%. U.K. equities outperformed, gaining 0.6%, while France’s CAC 40 slipped 0.1% as of 08:40 GMT.

The cautious advance followed a strong handover from Asia, where markets extended record-setting gains after Wall Street closed higher overnight. In the U.S., strength in energy and financial stocks helped lift the Dow Jones Industrial Average to an all-time high, reinforcing positive global equity momentum.

Energy markets briefly came into focus after a U.S. military raid that resulted in the capture of Venezuelan President Nicolás Maduro. U.S. oil stocks rallied on the news, while crude prices eased slightly after rising about $1 a barrel overnight, as traders assessed potential implications for Venezuelan supply flows.

Despite the headlines, the broader market reaction in Europe remained contained, with investors continuing to trade largely on underlying momentum rather than geopolitical risk.

Economic data also drew attention. Preliminary figures from statistics agency INSEE showed that French consumer prices rose slightly less than expected in December. France’s EU-harmonised inflation rate came in at 0.7% year-on-year, below the 0.8% forecast in a Reuters poll, offering a mildly reassuring signal on the inflation outlook.

Among notable movers, InPost surged more than 15% after the parcel-locker operator revealed it had received an indicative buyout proposal. The company said it disclosed the approach following unusual movements in its share price and trading volumes, and that it has formed a special committee to review the potential transaction.