European shares edged lower Thursday, with the STOXX 600 down 0.4% to 637.56 by 0710 GMT as investors weighed Middle East tensions and awaited US-China talks. Brent crude held above $100 a barrel amid supply concerns.
Iranian officials communicated with US envoys at the UN General Assembly, but both sides signalled little progress toward ending the conflict. European energy shares gained 0.3%, while aerospace and defence stocks led sector declines, weighed down by Saab and Hensoldt.
A summit between US President Donald Trump and Chinese President Xi Jinping was also in focus, with hopes for progress on trade. Shelly Group rose 6.2% after Schneider said it intended to launch a €1.2 billion ($1.4 billion) takeover bid for the Bulgarian smart-device maker; H&M fell 2.5% despite a bigger-than-expected rise in June-August operating profit.
