European shares dip on Middle East tensions ahead of US-China talks

Hensoldt AG

24/09/2026 08:05

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Sept 24 (Reuters) - European shares inched lower on Thursday as investors weighed lingering tensions in the Middle East and awaited the highly anticipated talks between the US and China.
The pan-European STOXX 600 .STOXX was down 0.4% at 637.56 points by 0710 GMT. Most regional bourses also traded lower.
Investor sentiment remained cautious as geopolitical tensions in the Middle East kept energy markets volatile. Iranian officials communicated with US envoys at the UN General Assembly, but both sides signalled little progress toward ending the conflict. 
Oil prices edged higher as traders reassessed supply risks linked to the Middle East conflict, with Brent crude futures LCOc1 holding above the key $100-per-barrel level. O/R 
European energy shares .SXEP gained 0.3%, while aerospace and defence stocks .SXPARO led sectoral declines, weighed down by Saab SAABb.ST and Hensoldt HAGG.DE. 
A summit between US President Donald Trump and Chinese President Xi Jinping is also in focus, with hopes for progress on trade relations.
Among individual stocks, Shelly Group SLYGG.DE gained 6.2% after Schneider SCHN.PA said it intends to launch a €1.2 billion ($1.4 billion) takeover bid for the Bulgarian smart-device maker.
Shares in H&M HMb.ST fell 2.5% even after the Swedish fashion retailer reported a bigger-than-expected rise in June-August operating profit.

        

 (Reporting by Sudeshna Ghoshal in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Sudeshna.Ghoshal@thomsonreuters.com;))