European shares advanced on Wednesday, with technology and defence stocks leading gains, as global mood remained buoyant after tame US inflation data cemented expectations of interest rate cuts by the Federal Reserve.
The pan-European STOXX 600 index rose 0.4%, as of 0704 GMT, with Germany’s blue-chip DAX up 0.6% after dipping in the previous session.
Global stocks rallied and Wall Street closed at record highs as traders priced in a 94% chance of a Fed rate cut in September, according to the CME FedWatch tool.
Meanwhile, leaders from Europe and Ukraine are set to speak to US President Donald Trump later in the day ahead of his summit with Russian President Vladimir Putin.
TUI rose 1.7% after Europe’s largest tour operator posted better-than-expected results as summer travel proved to be resilient.
E.ON reported a bigger first-half core profit and maintained its full-year outlook with Europe’s largest energy grids operator calling on Germany to raise future returns on grid investments.
Shares were marginally up. Vestas fell 1.8% after the wind turbine maker reported a smaller-than-expected rise in operating profit for the second quarter but maintained its fiscal-year financial outlook. Reuters