STOXX 600 up 0.3
Defence companies jump amid Middle East conflict
Eurozone39;s unemployment rate due at 0900 GMT

Oct 2 Reuters European shares advanced on Wednesday, led by gains in energy and defence stocks, defying a slump in Asia and Wall Street after Iran39;s missile strike on Israel amplified fears of a broader regional conflict.

The panEuropean STOXX 600 was up 0.3 at 522.37 points.

The energy sector gained 2.4 and eyed its best session in more than five months, as oil prices rose on concerns that the Middle East conflict could escalate following Iran39;s biggestever military blow against Israel.

Heightened tensions also boosted defence companies including Germany39;s Rheinmetall, Sweden39;s Saab, BAE Systems, Leonardo, Thales and Dassault Aviation, which gained between 2 and 3.

A gauge of European aerospace and defence stocks rose nearly 1.

Israeli Prime Minister Benjamin Netanyahu promised that Iran would pay for its missile attack against Israel on Tuesday, while Tehran said any retaliation would be met with vast destruction.

Basic resources rose 0.9 as copper prices gained after China39;s stimulus measures brightened demand prospects.

On the datafront, eurozone unemployment data for August is expected at 0900 GMT. Markets will also monitor comments by the European Central Bank39;s chief economist, Philip Lane, with a host of ECB board members set to speak through the day, including Vice President Luis de Guindos.

Ratesensitive European real estate…