European shares shrug off global recession on Middle East risks as energy stocks gain By Reuters

(Reuters) – European shares opened higher on Wednesday, led by energy stocks, defying a slide in Asian shares and Wall Street after Iran’s ballistic missile attack on Israel sparked fears of a wider regional conflict.

The pan-European rose 0.2 percent to 522.10 points as of 0710 GMT.

The energy sector provided the biggest boost to the index, gaining 1.7 percent after oil prices rose on growing concerns in the Middle East that could escalate following Iran’s biggest ever military strike against Israel. (OR)

Defense companies such as Germany’s Rheinmetall, Sweden’s Saab and BAE Systems (LON:) gained between 1% and 3%.

The basic resource rose 1.1 percent as prices rose after China’s stimulus measures improved the demand outlook. (MET/L)

On the data front, eurozone unemployment data for August is due at 0900 GMT. Markets will also focus on comments from European Central Bank chief economist Philip Lane, with a host of ECB board members set to speak throughout the day, including Vice President Luis de Guindos.

JD (NASDAQ: ) Sports Fashion lost 2.5% despite the British sportswear retailer beating a consensus forecast for first-half profit.

(This story has been corrected to set the energy sector move at 1.7%, not 17%, in paragraph 3)