European shares edge higher ahead of ECB rate verdict; Mideast tensions eyed

European shares inched higher in choppy trading on Thursday, with escalating tensions in the Middle East keeping investors cautious ahead of the European Central Bank's interest rate outlook later in the day.

The pan-European STOXX 600 index edged 0.3% higher to 620.24 points by 0717 GMT.

Crude prices were near $95 a barrel as fresh airstrikes by the U.S. and Iran added to traders' concern over energy supplies, with no signs of the Strait of Hormuz, a critical global oil shipping route, reopening soon.

Energy cost-sensitive travel and leisure stocks were among top sectoral decliners, with easyJet and Lufthansa down 1.7% and 0.5%, respectively.

Offsetting some of those concerns, Wizz Air reported annual profit above estimates, sending shares up 4.6%. However, the carrier did not provide a forecast for fiscal 2027, citing an uncertain outlook.

Dealmaking news was also on the radar as Hugo Boss rose 6.4% after the UK's Frasers Group launched a €2 billion ($2.31 billion) takeover offer for the struggling German fashion brand.

Chip stocks such as BE Semiconductor and ASM International gained 4.2% and 4.8%. The broader tech has seen some volatility since late last week as AI stocks globally have paused from a strong rally over the past two months.

Focus will shift later in the day to the ECB's monetary policy decision, with traders pricing in a 25-basis-point rate hike, according to LSEG-compiled data. Greater attention will be paid to the central bank's monetary policy path, given the repercussions of the oil shock on the economy.

($1 = 0.8660 euros)

(Reporting by Utkarsh Hathi and Johann M Cherian in Bengaluru; Editing by Rashmi Aich)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published June 11, 2026 at 2:31 AM.