European stocks rise as markets wait for US inflation, Fed verdict

European stocks opened higher on Wednesday, helped by a fall in euro zone bond yields, while investors’ focus shifted to important US inflation and the Federal Reserve’s monetary decision expected later in the day.

The pan-European STOXX 600 index rose 0.4% as of 0723 GMT after two declines due to political uncertainty in France.

Euro zone government bond yields fell Wednesday after hitting multi-month highs as markets awaited U.S. data and the Federal Reserve’s rate verdict.

Most sectors traded higher, led by European lenders, up 1%, while auto stocks underperformed, down 0.5%.

Inflation in Germany accelerated in May due to rising service prices, preliminary data showed. The country’s benchmark DAX index rose 0.5%. Shares in Umicore fell 6.3% to the bottom of the benchmark index after the Belgian metal recycling group issued a profit warning for 2024, making it the latest supplier to be hit by a slowdown in the electric vehicle market. Legal & General fell 3.2% even after the British insurer announced it would propose a 200 million pound ($254.86 million) share buyback and merge its investment units.