European Shares Extend Gains On Fed Rate Cut Hopes

(RTTNews) - European stocks traded higher on Wednesday as in-line U.S. inflation data cemented expectations of interest rate cuts by the Federal Reserve in September.

U.S. Treasury Secretary Scott Bessent wants the Fed to keep the door open to a larger, 50 basis-point rate cut next month following recent weak job growth revisions.

In economic releases, Germany's consumer price inflation remained stable in July, as initially estimated, data from Destatis showed earlier today.

The consumer price index logged an annual increase of 2.0 percent in July, the same rate of rise as seen in June and matched the estimate published on July 31.

The pan European STOXX 600 was up half a percent at 550.69 after rising 0.2 percent in the previous session.

The German DAX climbed 0.8 percent, France's CAC 40 added half a percent and the U.K.'s FTSE 100 was up 0.2 percent.

Evotec, a German drug discovery company, rallied nearly 3 percent after narrowing its first-half loss and backing annual revenue outlook.

Tank gearbox maker RENK Group climbed 2.8 percent after posting stronger-than-expected second-quarter results.

Thyssenkrupp Nucera declined 2 percent after the hydrogen equipment supplier reported an unexpected quarterly loss.

E.ON rose over 1 percent. The energy utility company reaffirmed its annual adjusted earnings guidance after posting improved results for the first half.

Tour operator TUI gained 2.6 percent after beating its quarterly earnings forecast. British homebuilder Persimmon tumbled 3.3 percent as it cautioned on market headwinds and budget uncertainty.

Beazley plummeted 9 percent after the insurer cut its full-year premium growth forecast.

Infrastructure contractor Balfour Beatty lost 3.6 percent despite reporting strong financial results for the first half of 2025.

Construction and infrastructure products group Hill & Smith soared more than 10 percent after posting robust first-half results.