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

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 ⁠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 holding above the key $100-per-barrel level.
European energy ‌shares gained 0.3%, while aerospace and defence ​stocks led sectoral declines, weighed down by Saab and ​Hensoldt.
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 gained 6.2% after Schneider said it intends to launch a €1.2 billion ($1.4 billion) takeover bid for the Bulgarian smart-device maker.
Shares in H&M fell ​2.5% even after the Swedish fashion retailer ​reported a bigger-than-expected rise in June-August operating profit.