European Shares Rise as Auto and Chemical Stocks Lead STOXX 600 Gains
STOXX 600 Index Performance and Sector Highlights
May 27 (Reuters) - Europe's benchmark STOXX 600 index edged higher on Wednesday and was just a hand's reach away from an all-time high as auto and chemical stocks gained, while investors kept a wary eye on escalating tensions in the Middle East.
The pan-European STOXX 600 index edged up 0.2% to 629.44 points by 0713 GMT, bringing it about 1% away from a record high hit in February before the conflict started.
Leading Sectors: Automobiles and Chemicals
Automobile Stocks Surge
Automobiles and parts led gains with a 1.5% advance, with Volvo Cars jumping 8% after the company said it received a U.S. government approval that would allow it to continue selling vehicles.
Chemical Stocks Rally
Chemical stocks also gained over 1% as AkzoNobel <AKZO.AS> shot up 16.6% after the paint maker rejected a joint cash takeover offer of €73 ($85) per share from rivals Nippon Paint <4612.T> and Sherwin-Williams <SHW.N>.
Market Risks and External Factors
Geopolitical Tensions in the Middle East
Keeping gains in check were escalating tensions in the Middle East as Iran called recent U.S. strikes a violation of the fragile ceasefire holding since April, while Israel bombed Lebanon in its heaviest strikes in weeks.
Oil Prices and Inflation Concerns
Brent crude prices were marginally lower, but at $98 a barrel they kept inflation worries at the top of investor minds.
Reporting and Editorial Credits
(Reporting by Johann M Cherian in Bengaluru; Editing by Mrigank Dhaniwala)