European Shares Rise on Tech Gains and Awaited U.S. Inflation Data

European shares opened higher, boosted by gains in the technology and basic resources sectors. Investors are keenly awaiting U.S. inflation data for insights into the Federal Reserve’s rate decision. Market volatility continues amid U.S. presidential debates and expected ECB interest rate cuts.

European shares opened on a positive note Wednesday, driven by an uptick in the technology and basic resources sectors. Investors are currently focused on a significant U.S. inflation report, anticipated for later in the day, to gauge the Federal Reserve's impending interest rate decision.

The pan-European STOXX 600 index recorded a 0.2% increase, with all regional indexes trading positively. ASML Holding's 3.8% rise significantly bolstered the technology sector, which saw a 1.4% uplift. Basic resources also gained 1.2%, supported by rising copper prices amid a softer U.S. dollar. Britain's FTSE 100 increased by 0.4%, reflecting stagnant economic output in July.

Investors remain laser-focused on U.S. consumer price data set for release at 1230 GMT, with speculation about a potential Federal Reserve rate cut next week. The probability of a 50-basis-point cut stands at 33%. Market caution persists following the first U.S. presidential debate between Kamala Harris and Donald Trump, which showed a shift in betting markets towards Harris. European Central Bank discussions and corporate movements, including UniCredit's stake acquisition in Commerzbank and Rentokil's downturn, are also influencing market sentiment.

(With inputs from agencies.)