European shares open higher ahead of Fed meeting, Euro inflation data

(Reuters) – European shares opened higher on Tuesday, boosted by gains in technology and oil stocks, while investors held back from placing big bets ahead of the Federal Reserve’s meeting and Euro zone inflation data.

The pan-European index was up 0.2% at 512.61 points by 0716 GMT, with the food and beverages sector capping gains.

Spirits maker Diageo (LON:) fell 8% after it reported a 4.8% decline in annual profit that was short of analyst expectations.

Basic resources fell 0.7% as base metals prices largely slipped due to slowing global growth momentum and risk-off sentiment, with aluminium and zinc hitting three-month lows. [MET/L]

BP (NYSE:) was up 2% after the oil giant reported second-quarter profit of $2.76 billion, beating market expectations, while increasing its dividend and extending its share repurchasing programme. The company’s update boosted the oil sector by 0.7%.

Among other individual stock moves, Standard Chartered (OTC:) gained 4.7% after the bank announced its largest share buyback of $1.5 billion and raised its annual earnings forecast.

St James’s Place soared 17.8% as the British wealth manager said it plans to cut tens of millions of pounds of costs.

The technology sector was up 0.5% ahead of Microsoft (NASDAQ:)’s results later in the day.

Meanwhile, the U.S. Federal Reserve will begin its two-day monetary policy meeting later in the day.

Investors also await Euro zone inflation data, expected at 0900 GMT.