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Tech stocks lead European shares higher ahead of Fed rate decision

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(Reuters) – European shares opened higher on Tuesday led by the gains in technology stocks, amid growing optimism that the U.S. Federal Reserve would skip raising interest rates in its policy meeting.

The pan-European STOXX 600 index rose 0.5% as of 0715 GMT, with the rate-sensitive tech sector index up 1.5%.

Investors were hopeful of U.S. inflation data releasing later in the day would likely show an easing in prices in May, further adding to bets that the Fed would skip hiking rates in its policy decision on Wednesday.

Embracer jumped 5.2% to the top of the STOXX 600, after the Swedish games group announced a restructuring programme to slash costs and investments, including in the development of new products.

Swedish industrial technology group Hexagon’s shares gained 4.3%, after it announced a collaboration with the world’s most valuable chip firm Nvidia Corp.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Rashmi Aich)

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