Both the STOXX 50 and the STOXX 600 gained 0.3% on Thursday, attempting to reverse losses from the previous session, with traders continuing to follow the situation in the Middle East while digesting fresh corporate news. Shares of H&M jumped more than 7% after the company reported weaker-than-expected sales in the fiscal second quarter but pointed to an uptick in demand to kick-start the summer season. Shell (0.2%) and BP (0.1%) were slightly higher after the former said that it has “no intention” of making an offer for the latter. Stellantis on the other hand, was down nearly 0.9%, with the company starting to review its long-term strategic plan. Meanwhile, NATO’s decision to raise defense spending targets from 2% to 5% of GDP by 2035 fueled a rally in European defense stocks, including Rheinmetall (1.4%) and BAE Systems (1.4%). On the data front, the Germany’s GfK Consumer Climate Indicator edged down slightly in July.