European shares up

European shares rose on Wednesday, with the pan-European STOXX 600 rising 0.3 per cent to near a two-week high by 08:22 GMT.

The travel and leisure sector led the gains, up 3.2 per cent, driven by a 10.3 per cent increase in Flutter after it raised its full-year outlook.

Investor optimism was boosted by US producer price data from Tuesday, which showed a smaller-than-expected rise in July, suggesting a possible Federal Reserve rate cut. US consumer price data, due at 12:30 GMT, and eurozone flash employment and GDP estimates, set for 09:00 GMT, will be closely watched.

UK inflation rose to 2.2 per cent, surpassing the Bank of England’s (BOE) 2 per cent target.

London’s FTSE 100 edged up 0.4 per cent, while the basic resources sector fell by 1.4 per cent due to a larger-than-expected drop in Chinese lending, impacting base metals prices negatively.

UBS shares surged 2.5 per cent after reporting a $1.14 billion second-quarter profit, while Straumann soared 13.7 per cent on news of a business sale and revised outlook.

Thyssenkrupp’s stock fell 4.2 per cent following a third-quarter net loss.

Attribution: Reuters

Subediting: Y.Yasser