European Shares Rise Amid Technology and Oil Gains Ahead of Federal Reserve Meeting

European shares opened higher on Tuesday, driven by gains in technology and oil stocks. Investors remain cautious ahead of the Federal Reserve's meeting and Euro zone inflation data. The STOXX 600 index rose 0.2%, while the food and beverages sector showed more modest gains. Key stocks like BP and Standard Chartered also saw significant movement.

European shares surged on Tuesday, propelled by robust performances in the technology and oil sectors. Investors maintained a cautious stance in anticipation of the Federal Reserve's monetary policy meeting and forthcoming Euro zone inflation data.

The pan-European STOXX 600 index increased by 0.2% to 512.61 points as of 0716 GMT, though the food and beverages sector tempered the overall gains. Spirits producer Diageo saw an 8% decline following a 4.8% drop in annual profits, missing analyst projections.

Basic resources fell 0.7%, influenced by sliding base metal prices amid concerns over global growth and a prevailing risk-off sentiment. In contrast, BP rose 2% after beating second-quarter profit forecasts and enhancing both its dividend and share repurchase programs, boosting the oil sector by 0.7%.

Among notable stock movements, Standard Chartered climbed 4.7% following its announcement of a $1.5 billion share buyback and an improved annual earnings outlook. St. James's Place rocketed 17.8% as the British wealth manager announced plans to slash millions of pounds in costs.

The technology sector also rose by 0.5% ahead of Microsoft's anticipated results. Investors are keenly awaiting Euro zone inflation data, expected at 0900 GMT.

(With inputs from agencies.)