European shares extend gains

European shares rose on Wednesday, extending gains after hitting a two-month low this week, as investors awaited US consumer price data for indications of rising inflation.

The pan-European Stoxx 600 index rose 0.4 percent by 0715 GMT, and the real estate sector was at the forefront of the emerging sectors in the morning.

Inflation data is expected to show the US consumer price index fell to 0.2 percent in April from 1.2 percent in March. The rise in inflation raised fears that the Federal Reserve (the US central bank) will raise interest rates quickly and significantly.

As for individual stocks, Sweden’s Match shares jumped 9 percent after Philip Morris International, the maker of Marlboro cigarettes, said it had recommended a cash offer for the company worth about 161.2 billion Swedish crowns ($16 billion).

Shares in French train maker Alstom rose 4.4 percent after the company announced that annual operating profit beat expectations.

Germany’s Bayer shares fell 5.8 percent after the US administration asked the Supreme Court not to consider the agrochemical and pharmaceutical company’s lawsuit to dismiss claims brought by clients who said the company’s weed killer Roundup causes cancer.