Europe Stocks Edge Near Record Highs Amid Rising Tensions and Oil Prices
European stocks continued their upward trend on Wednesday, hovering near record highs as investors digested corporate earnings and awaited key US inflation data. The pan-European STOXX 600 index remained steady at 660.17 points by 0837 GMT, maintaining its proximity to the record high reached on Monday.
The year-to-date gains for European shares now stand at nearly 12% as investors assess the impact of escalating geopolitical tensions and developments in the Middle East. Brent crude rose 0.6% to $89.45 a barrel, supported by fresh attacks on shipping in the region and fading hopes of a near-term resolution to the Iran conflict.
The aerospace and defence sector led gains across Europe, rising 0.9%, as investors sought exposure to companies that could benefit from heightened geopolitical risks. The energy sector also gained 0.9%, supported by stronger oil prices.