European shares continue to recover

European shares extended their rally on Wednesday, as cautious traders awaited the outcome of the Federal Reserve’s two-day meeting, which concludes later Wednesday, for indications of tightening monetary policy in the face of rising inflation.

The pan-European STOXX 600 index rose 1.1 percent, with all sectors gaining, led by the travel and mining sectors.

The Federal Reserve is due to make its monetary policy decision at 1900 GMT after concluding its meetings, and markets have already digested the first rate hike in March and three more hikes every quarter of a percentage point during the year.

Health products group Isetti fell 3.4 percent after it posted a larger-than-expected decline in its quarterly profit and said it planned to raise prices further due to higher costs.

Shares of Italian fashion group Todt jumped 10.1 percent after announcing a 40 percent increase in sales last year, the first rise in five years.