(Reuters) – European shares edged up on Wednesday, lifted by Bayer and LVMH, while optimism over reopening in China and hopes of less aggressive U.S. interest rate hikes aided the sentiment.
The pan-regional STOXX 600 gained 0.1% by 0818 GMT.
Wall Street ended higher on Tuesday and European stocks cut some losses, on risk appetite spurred by expectations of softer U.S. inflation print this week and relief after Federal Reserve Chair Jerome Powell refrained from commenting on U.S. rate policy.
Signs of slowing wage inflation last week had boosted bets of a less aggressive tightening by the Fed and the European Central Bank.
On Wednesday, rate-sensitive tech stocks rose 0.8%.
Energy stocks advanced 1.0%, while miners gained 1.7%, as commodity prices rose on optimism over top consumer China’s reopening.
Among individual movers, Britain’s second-biggest supermarket group Sainsbury’s fell 2.7% after CEO Simon Roberts said he was cautious on the consumer backdrop, even as it forecast full-year profit towards the upper end of its guided range.
Bayer rose 2.1% after Bloomberg reported that activist investor Bluebell is pushing for a breakup of the German pharmaceutical company.
Deliveroo fell 4.4% on a ratings cut by J.P.Morgan.
LVMH gained 0.7% after Chairman and CEO Bernard Arnault tightened his family’s grip on the luxury goods empire, putting his daughter Delphine in charge of one of its leading labels, Christian Dior.
(Reporting by Bansari Mayur Kamdar in Bengaluru; editing by Uttaresh.V)