European shares buck global downturn on Middle East risks as energy stocks gain
(Reuters) – European shares opened higher on Wednesday, led by energy stocks, defying a slump in Asian stocks and Wall Street after Iran’s ballistic missile strike on Israel raised fears of a broader regional conflict.
The pan-European STOXX 600 rose 0.2% to 522.10 points, as of 0710 GMT.
The energy sector provided the biggest boost to the index, gaining 1.7% after oil prices jumped due to rising concerns in the Middle East that could escalate, following Iran’s biggest-ever military blow against Israel. [O/R]
Defence companies such as Germany’s Rheinmetall, Sweden’s Saab and BAE Systems (LON:BAES) gained between 1% and 3%.
Basic Resources rose 1.1% as copper prices gained after China’s stimulus measures brightened demand prospects. [MET/L]
On the data-front, euro-zone unemployment data for August is set to drop at 0900 GMT. Markets will also be focussing on comments by the European Central Bank’s chief economist Philip Lane, with a host of ECB board members set to speak through the day, including Vice President Luis de Guindos.
JD (NASDAQ:JD) Sports Fashion lost 2.5% despite the British sportswear retailer beating a consensus forecast for first-half profit.
(This story has been corrected to fix the energy sector move to 1.7%, not 17%, in paragraph 3)
