European Shares Rally Ahead of Key Data and Upbeat Corporate Earnings

European shares opened higher on Wednesday, bolstered by positive corporate updates and optimism ahead of key U.S. and euro zone data. The STOXX 600 rose by 0.4%, nearing a two-week high. U.S. producer prices climbed less than expected, encouraging market sentiment. Major individual stock performers included UBS, Straumann, and Flutter.

European shares opened higher on Wednesday, as investors awaited key data from the U.S. and the euro zone, while a raft of upbeat corporate updates lifted risk appetite.

The pan-European STOXX 600 was up 0.4% to trade near a two-week high, as of 0709 GMT. U.S. producer prices increased less than expected in July, data on Tuesday showed, reinforcing market view that cooling inflation will prompt the Federal Reserve to cut interest rates soon.

U.S consumer prices, due later in the day, will also be parsed for clues on the health of the world's largest economy after slowdown fears choked risk assets globally earlier this month. Also on investors' radar will be flash employment and GDP estimates for the euro zone, set to drop at 0900 GMT.

Britain's consumer price inflation rose to 2.2% after two months at the Bank of England's 2% target. Economists polled by Reuters had forecast a 2.3% jump. Among individual stocks, UBS gained 1.8% as Switzerland's largest bank posted a net profit of $1.14 billion for the second quarter, comfortably surpassing analysts' forecast.

Straumann soared 11.3% after the dental implant maker announced the sale of its DrSmile aligner business and also raised its full-year outlook. Shares of Flutter surged 12.3% after the world's largest online betting firm raised its full-year outlook following a better-than-expected second quarter.

The travel and leisure sub-index gained nearly 4%.

(With inputs from agencies.)