Risk Appetite Prevails Amid Geopolitical Shock

Market Overview

Global equity markets closed higher as investors looked past escalating geopolitical tensions following US military action in Venezuela. Risk appetite remained resilient, supported by rising crude oil prices, strong sector rotations, and confidence that the conflict would not spiral into a broader global disruption.

United States: Confidence Holds Firm

US equities advanced solidly, led by cyclical and energy-related names. The Dow Jones $DJIA(.DJI)$  surged 1.2% to 48,977.18, while the S&P 500 $S&P 500(.SPX)$  gained 0.6% and the Nasdaq $NASDAQ(.IXIC)$  rose 0.7%. Investors appeared reassured that geopolitical risks would remain contained, while higher oil prices supported energy stocks.

Europe: Defense Stocks Lead

European markets climbed despite heightened geopolitical uncertainty. Investors rotated into defense-related stocks, driving Germany’s DAX up 1.3%. France’s CAC 40 added 0.2%, while the UK’s FTSE 100 rose 0.5%, reflecting cautious optimism across the region.

Asia: Risk-On Momentum

Asian equities followed global cues, supported by improving risk sentiment. Japan’s Nikkei jumped 3.0%, China’s Shanghai Composite gained 1.4%, while Hong Kong’s Hang Seng Index $HSI(HSI)$  ended flat as investors remained selective.

Outlook & Insights

Markets are currently pricing in limited geopolitical spillover, with liquidity and earnings momentum dominating sentiment. However, volatility may resurface if energy prices spike further or geopolitical tensions escalate unexpectedly.

Conclusion

Despite rising geopolitical risks, global markets demonstrated resilience, underscoring investors’ focus on growth, liquidity, and sector opportunities rather than short-term political shocks.