European Shares Climb Amid Middle East Tensions

European shares opened higher on Wednesday, led by energy stocks, despite a slump in Asian stocks following Iran's missile strike on Israel. The STOXX 600 index rose 0.2%, with the energy sector gaining 17%. Defence companies and basic resources also saw gains, while JD Sports Fashion dropped 2.5%.

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 17% after oil prices jumped due to rising concerns in the Middle East that could escalate, following Iran's biggest-ever military blow against Israel.

Defence companies such as Germany's Rheinmetall, Sweden's Saab and BAE Systems gained between 1% and 3%. Basic Resources rose 1.1% as copper prices gained after China's stimulus measures brightened demand prospects.

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 Sports Fashion lost 2.5% despite the British sportswear retailer beating a consensus forecast for first-half profit.