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10.06.202607:37:48UTC+00European Stocks Edge Higher

European stocks inched higher on Wednesday, with both the STOXX 50 and STOXX 600 up 0.2%, even as renewed tensions in the Middle East weighed on sentiment following reciprocal strikes between the US and Iran. Oil prices fluctuated around the flatline in the wake of the geopolitical developments.

Investors are now turning their attention to the European Central Bank’s monetary policy decision due tomorrow. On the corporate front, STMicroelectronics climbed 2% after BofA Global Research raised its rating on the chipmaker to “buy” from “neutral.” Peers and heavyweight names also advanced, including Infineon (+1.7%), Nestlé (+1.2%), TotalEnergies (+0.7%), and UniCredit (+1.4%).

By contrast, UK banks extended the previous session’s losses after a J.P. Morgan note warned of a potentially larger impact from new Chinese regulations. HSBC and Standard Chartered both fell by more than 1%. SAP and UBS each dropped 1.7%, while Sanofi slipped 0.9% after announcing it would halt its phase 3 trial of riliprubart in CIDP patients.

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