European stocks pause rally as traders assess Venezuela fallout ahead of data

Jan 7 (Reuters) - European stocks steadied on Wednesday after a streak of record closes, as investors took a breather to digest the latest U.S.-Venezuela developments ahead of a batch of fresh economic data.

The STOXX 600 index .STOXX rose 0.1% by 0804 GMT, a day after notching a record closing high. The benchmark in Germany .GDAXI rose 0.44%, and indexes in Spain .IBEX and Italy .FTMIB were flat. All three had hit all-time peaks a day earlier.

While markets have largely looked past the flare-up in global geopolitical risks, Wednesday's pause could be a healthy reset as investors weigh the impact from U.S. actions in Venezuela.

Oil prices fell after U.S. President Donald Trump said the United States had reached a deal to import $2 billion worth of Venezuelan crude, a move that is expected to increase supplies.

Shares of UK energy heavyweights Shell SHEL.L and BP BP.L fell 1.8% and 2.9%, respectively.

Traders also face a busy data docket, which will be pivotal to shaping the macroeconomic narrative. The U.S. Labor Department's Job Openings and Labor Turnover Survey, also called the JOLTS report, is due on Wednesday.

Among individual movers, Nestle NESN.S fell 1.2%, extending losses a day after it said it was recalling some batches of its infant nutrition products due to possible contamination with a toxin that can cause nausea and vomiting.