- H&M rises after upbeat second-quarter profit
- European defence shares rise
- EU to canvass leaders at summit on resolving U.S. tariff conflict
- Inchcape up after reassuring outlook
June 26 (Reuters) - European shares edged higher on Thursday, aided by signs that the Israel-Iran ceasefire appeared to be holding, while investors braced for the July 9 deadline for trade deals with the United States.
The pan-European STOXX 600 index was up 0.2% at 538.27 points, as of 0839 GMT. Other regional indexes traded higher.
Investors have been soothed by a ceasefire between Israel-Iran. U.S. President Donald Trump said on Wednesday he would likely seek a commitment from Iran to end its nuclear ambitions at talks next week.
Attention has now shifted to the upcoming July 9 U.S. tariff pause deadline. With limited progress on trade deals, except for a U.S.-UK agreement, the European Union is scrambling to secure its own deals with Washington.
On Thursday, EU leaders are expected to tell the European Commission whether they prefer a quick trade deal with the U.S., even if it means conceding better terms to Washington, or to escalate the dispute in hopes of securing a more favourable outcome.
"We haven't heard much about a deal between U.S. and Europe and as we approach closer to the tariff deadline, it's becoming more of a risk factor for Europe," said Anthi Tsouvali, multi-asset strategist at UBS Global Wealth Management.
The bloc is already facing tariffs including 50% on steel and aluminium and 25% for cars and car parts. Trump has threatened that tariffs could rise to 50% without an agreement.
Meanwhile, Trump on Wednesday called Federal Reserve Chair Jerome Powell "terrible" and said he has three or four people in mind as contenders for the top job. The Wall Street Journal reported that Trump may replace Powell as early as September or October.
Among sectors, European defence rose 1.3%. NATO leaders on Wednesday backed the big increase in defence spending that Trump had demanded.
Rheinmetall and Hensoldt jumped 3% and 2.8%, respectively. Saab rose 3.2%, while QinetiQ was up nearly 4%.
Industrial miners led sectoral gains, rising 1.5%.
H&M gained 5.6% after the Swedish fashion retailer reported a slightly stronger second-quarter profit.
Inchcape rose 6% and was among the top percentage gainers in the STOXX 600, after the British car distributor reiterated its full-year financial outlook.
Edenred advanced 5.1% after a French minister updated on the proposed meal voucher reform.
EQT gained 5.1% after Citigroup upgraded the Swedish private equity firm to "buy" from "neutral".
On the data front, German consumer sentiment is set to edge lower heading into July as households' increased willingness to save counteracts improving income prospects.
Reporting by Sukriti Gupta and Sanchayaita Roy in Bengaluru; Editing by Sonia Cheema and Sherry Jacob-Phillips
Source: Reuters