European Shares Inch Higher Amid Earnings Focus, Awaiting Powell's Testimony

European shares rose on Wednesday, driven by investor focus on earnings and Federal Reserve Chair Jerome Powell's congressional testimony. The STOXX 600 gained slightly, with travel and leisure shares leading. Key stock movements included declines for Direct Line and Barratt Developments while Travis Perkins saw gains with the appointment of a new CEO.

European shares advanced on Wednesday as earnings grabbed focus and investors awaited comments from Federal Reserve Chair Jerome Powell's second day of testimony before Congress following his cautious remarks on rates on the first day.

The pan-European STOXX 600 rose 0.2% by 0711 GMT, led by a 0.6% gain in travel and leisure shares. Powell on Tuesday said inflation "remains above" the Fed's 2% target, but has been improving in recent months and "more good data would strengthen" the case for central bank interest rate cuts.

Among stocks, Direct Line declined 0.5% after the British insurer plans to pay around 60% of its operating earnings as regular dividend. UK's Barratt Developments slid 2.8% as the homebuilder forecast a fall of up to 7% in its home-building targets for fiscal year 2025, as high mortgage rates and broader economic concerns hold back recovery in the country's housing sector.

Travis Perkins jumped 2.6% after British construction materials firm named Pete Redfern as its new CEO, succeeding Nick Roberts who will step down on Sept. 16 after five years at the helm.