European stocks inch up as autos, chemicals rise

European stocks rose 0.2% on Wednesday as gains in automobile and chemical shares pushed the pan‑European STOXX 600 higher. By 0713 GMT the index was at 629.44 points, about 1% below the record reached in February.

Automobile and parts stocks led the session, with the sector index up roughly 1.5%. Volvo Cars shares rose 8% after receiving U.S. clearance to continue selling vehicles in that market. Chemical stocks outperformed the broader market, advancing more than 1%, driven by a 16.6% jump in AkzoNobel after the company rejected a joint cash takeover proposal valued at €73 per share from Nippon Paint and Sherwin‑Williams.

Geopolitical developments kept investors cautious. Iran described recent U.S. strikes as a violation of the ceasefire that has been in place since April. Israel launched its heaviest strikes in weeks on positions in Lebanon. Traders monitored these events for any impact on energy flows and market stability.

Brent crude traded near $98 a barrel, marginally lower on the session but at levels that markets watch for potential effects on inflation. Energy prices near this range can influence inflation readings and central bank policy outlooks.

On the regulatory front, the European Parliament approved new foreign direct investment screening rules that were provisionally agreed with the Council in December. The legislation still requires formal approval from the Council before it can enter into force; implementation is set to begin 18 months after formal adoption. The updated framework would require member states to screen investments in sensitive areas including defense, dual‑use goods and critical technologies.

Overall market gains were modest, with autos and chemicals providing the main support while geopolitical tensions and elevated energy prices limited broader upside. Market participants continued to watch developments in the Middle East, oil markets and corporate announcements for signals on the near‑term direction of European equities.