European Shares Climb as Energy Sector Boosts Index Amid Middle Eastern Tensions

European shares opened higher on Wednesday, driven by gains in the energy sector following a missile strike by Iran on Israel. The pan-European STOXX 600 rose 0.2%, with energy stocks up 1.7%. Defence and basic resources also saw gains, while JD Sports Fashion fell despite positive financial results.

European shares experienced an uptick on Wednesday, led by a robust energy sector, despite a downturn in Asian stocks and Wall Street. This follows Iran's ballistic missile strike on Israel, raising fears of regional conflict escalation.

The pan-European STOXX 600 climbed by 0.2% to reach 522.10 points as of 0710 GMT. The energy sector notably surged by 1.7% driven by soaring oil prices underpinned by Middle Eastern tensions. Defence companies like Germany's Rheinmetall and Sweden's Saab also spiked between 1% to 3%, while the Basic Resources sector saw a 1.1% rise on the back of increased copper prices due to China's economic stimulus measures.

Meanwhile, euro-zone unemployment data is set to be released at 0900 GMT. Additionally, market eyes are on remarks from European Central Bank's chief economist Philip Lane and other ECB board members throughout the day. In contrast, JD Sports Fashion witnessed a 2.5% dip despite surpassing profit expectations in its latest financial report.

(With inputs from agencies.)