European Shares Rise as Fed's Interest Rate Cut Expectations Boost Market Sentiment

European shares saw an uptick on Wednesday, largely influenced by technology and defense stocks, after the release of U.S. inflation data reinforced predictions that the Federal Reserve would cut interest rates soon.

The pan-European STOXX 600 index rose by 0.4%, while Germany's DAX index increased by 0.6%, reversing losses from the previous day. The prospect of a rate cut in September was backed by a 94% probability as traders reacted to global financial dynamics.

On the corporate front, TUI's shares rose due to better-than-expected summer travel results, while E.ON maintained a steady outlook after reporting increased profits. Conversely, Vestas experienced a slight dip following lower-than-anticipated operating profits in the second quarter.

(With inputs from agencies.)