May 27 (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 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.Â
Automobiles and parts led gains with a 1.5% advance, with Volvo Cars jumping 8% after the company said it received a U.S. government approval that would allow it to continue selling vehicles.
Chemical stocks also gained over 1% as AkzoNobel 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 .
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.Â
(Reporting by Johann M Cherian in Bengaluru; Editing by Mrigank Dhaniwala)
