European Shares Climb as Oil and Gas Sectors Lead Gains Ahead of U.S. Inflation Data

European shares opened higher on Wednesday, supported by strong performances in the oil, gas, and basic resources sectors. Investors are closely watching for the upcoming U.S. inflation report, which could provide insight into the Federal Reserve’s potential interest rate moves next week.

The pan-European STOXX 600 index rose by 0.3% as of 0710 GMT, with all regional markets trading positively. The oil and gas sector led the charge with a 1.2% increase, driven by concerns over Hurricane Francine disrupting U.S. production, overshadowing demand worries. Meanwhile, the basic resources sector gained 1.6%, as copper prices benefited from a weaker U.S. dollar.

With limited economic data from Europe, investor focus remains on the U.S. consumer price index report due at 1230 GMT.

In the UK, the FTSE 100 rose by 0.4% following GDP data showing no month-on-month growth in July.

Other key developments included Commerzbank’s 15.7% surge after Italy’s UniCredit acquired a 9% stake from the German government for 702 million euros ($775.29 million). In contrast, British pest control firm Rentokil saw its shares slump more than 16%, as it announced job cuts and reported slowing North American revenue.

Investors are also watching for comments from European Central Bank officials Elizabeth McCaul and Claudia Buch later in the day.