European shares slipped on Thursday as investors assessed persistent Middle East tensions and awaited highly anticipated talks between US President Donald Trump and Chinese President Xi Jinping. The pan-European STOXX 600 was down 0.4% at 637.56 points by 0710 GMT, while most regional bourses also traded lower. Energy markets remained volatile after Iranian officials communicated with US envoys at the UN General Assembly, with both sides signalling little progress toward ending the conflict. Brent crude futures held above $100 per barrel as traders reassessed supply risks, lifting European energy shares 0.3%. Aerospace and defence stocks led sectoral declines, weighed down by Saab and Hensoldt. In individual stocks, Shelly Group gained 6.2% after Schneider said it intended to launch a €1.2 billion ($1.4 billion) takeover bid for the Bulgarian smart-device maker. H&M fell 2.5% despite reporting a bigger-than-expected rise in operating profit for June-August.