European stocks extend rebound ahead of U.S. inflation data

European shares rose on Wednesday, extending a rebound from two-month lows hit earlier this week, as investors awaited U.S. consumer price data for cues on whether inflation was peaking.

The continent-wide STOXX 600 index rose 0.4% by 0715 GMT, with real estate leading morning gains.

Data is expected to show U.S. consumer price index (CPI) cooled to 0.2% in April from 1.2% in March. Surging inflation has raised concerns that the Federal Reserve will raise interest rates aggressively.

Among individual stocks, Swedish Match jumped 9.0% after Marlboro-maker Philip Morris International Inc said it was making a recommended cash offer for the company of about 161.2 billion Swedish crowns ($16 billion).

French train maker rose 4.4% after it reported annual operating profit above expectations.

Bayer fell 5.8% after the Biden administration asked the U.S. Supreme Court not to hear the German agriculture and pharmaceutical company's bid to dismiss claims by customers who contend that its Roundup weedkiller causes cancer.