European stocks rise as defense shares lead after Venezuela shock

Jan 5 (Reuters) - European stocks traded firmer on Monday, extending their early‑year gains as investors bought defense stocks after U.S. military strikes on Venezuela stirred fresh geopolitical concerns.

By 0810 GMT, the pan‑European STOXX 600 .STOXX was 0.3% higher. Trading volumes are expected to normalize as investors return following New Year holidays.

The defense index .SXPARO rose 2.7% and hit its highest in two months. Technology .SX8F and basic resources .SXPP were also up 2.1% and 2%, respectively.

Investors will continue to eye the fallout from the dramatic capture of Venezuelan President Nicolas Maduro by U.S. forces over the weekend. President Donald Trump said on Saturday he was putting Venezuela under temporary American control.

Investors are also focusing on central banks, watching incoming data for clues on how quickly rate cuts could arrive.

Meanwhile, miners Glencore GLEN.L, Rio Tinto RIO.L and Anglo American AAL.L got a boost on the back of higher copper prices.

Shares of ASML ASML.AS, the world's biggest supplier of computer chip-making equipment, rose 3.9%. Analysts at brokerage Bernstein upgraded the stock to "outperform" from "market perform" and raised their price target on the stock to 1,300 euros from 800 euros.