European shares edge up as auto, chemical stocks rise; Mideast talks eyed

European stocks edged higher as auto and chemical shares lifted the STOXX 600 close to record levels. Gains were tempered by renewed concerns over escalating tensions in the Middle East and their impact on inflation.

May 27, 2026

Reuters

European shares edge up as auto, chemical stocks rise; Mideast talks eyed

FILE PHOTO: European Union flags flutter outside the EU Commission headquarters, on the day farmers protest against proposed cuts to Common Agricultural Policy (CAP) funding and the European Commission's plan to merge agricultural and cohesion policies, in Brussels, Belgium July 16, 2025.

Yves Herman/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 .STOXX 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.

Automobiles and parts .SXAP led gains with a 1.5% advance, with Volvo Cars VOLCARb.ST jumping 8% after the company said it received a U.S. government approval that would allow it to continue selling vehicles.

Chemical stocks .SX4P 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>.

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.

Brent crude prices were marginally lower, but at $98 a barrel they kept inflation worries at the top of investor minds.

-Reporting by Johann M Cherian in Bengaluru; Editing by Mrigank Dhaniwala/Reuters