Maduro's arrest could boost markets, says analyst
According to an analyst from Frankfurt, stock markets are likely to react positively after the capture of Venezuelan President Nicolรกs Maduro by the U.S., due to expectations of increased oil production in the country.
"It is true that it will take some time for actual oil production in Venezuela to start increasing again. We know that markets often trade on expectations and forecasts. In this scenario, the expectation is that Venezuela's oil production will increase in the coming months and years," said Carsten Brzeski, chief economist at ING, to Reuters.
Global investors will also face a new increase in geopolitical risk following the U.S. measure, which could unleash the country's vast oil reserves and boost risk assets in the long term, but trigger a flight to safety when negotiations resume.
President Donald Trump stated that the U.S. would take control of the oil-producing country, while Maduro, whom the U.S. has repeatedly accused of running a "narco-state" and of election fraud, was in a detention center in New York on Sunday (4), awaiting the formalization of charges.
Washington had not conducted such a direct intervention in Latin America since the invasion of Panama in 1989.
"What the U.S. attack on Venezuela means, in my opinion, is clearly that the U.S. has demonstrated its military power, or, as they themselves said, their military strength.
It is a clear sign that the U.S. wants to have more influence in the Western Hemisphere and, for Europe, this should be yet another warning for it to finally get organized," Brzeski said.
Markets were closed when the attacks occurred, but had started the first trading day of the year on the right foot, with Wall Street indexes closing higher and the dollar appreciating against a basket of major currencies on Friday (2).
Source: CNN Brazil
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