Israel’s Iron Dome anti-missile system intercepts rockets as seen from Ashkelon, Israel on October 1, 2024.
Amir Cohen | Reuters
LONDON – European stocks edged higher on Wednesday as investors tried to steer clear of rising tensions in the Middle East.
Pan-European Stoxx 600 Up 0.35% in early trade, most sectors and major bourses moved in the green. Oil and gas stocks added 2.42% on the prospect of supply disruptions in the Middle East, while travel and leisure stocks fell 0.25% as airlines diverted flights out of the region.
On the stock front, security companies have a high stake in rising conflict risks Chap And BAE Systems Adds 2.2% Thales And Rheinmetall Both rose more than 1.3%.
Meanwhile, shares of the British sports retailer JD Sports The company fell 3.5% despite posting revenue and profit that beat expectations in the first half. It comes as income Nikewhose products it sells, fell on Tuesday.
The cautious advance followed a negative start to the trading month on Wall Street after Iran launched a ballistic missile attack on Israel in retaliation for the killing of Hezbollah leader Hassan Nasrallah. and the Iranian commander in Lebanon.
The attack came as Israel stepped up its offensive against the Iran-backed militant group Hezbollah after it deployed ground forces in southern Lebanon.
Oil prices rose following the attack, while the CBOE Volatility Index (VIX), Wall Street’s so-called fear gauge, was above 20 at the day’s peak.
US futures were lower in overnight trade, with Asia-Pacific markets mixed.
Mainland China markets were closed on Wednesday for the Golden Week holiday and will remain closed for the rest of the week. However, Hong Kong’s Hang Seng index traded 6% higher, showing more confidence about Beijing’s stimulus policies.
Back in Europe, investors await fresh unemployment data from the region and UK house price data.
— CNBC’s Dan Mangan contributed to this report.
