STOXX 600 up 0.7
U.S. CPI data due at 1230 GMT
UK big banks shine after stress test results
Semiconductor shares up after Jefferies PT raise

June 12 Reuters European shares rose on Wednesday ahead of key U.S. inflation data which will determine whether the Federal Reserve could end its rate hikes soon, while major British lenders climbed after the Bank of England39;s stress test.

The panEuropean STOXX 600 index was up 0.7 by 833 GMT, extending gains to the fourth straight session.

The U.S. data, scheduled to be released at 1230 GMT, is expected to show the consumer price CPI index moderated to 3.1 yearonyear in June after May39;s 4 rise, while core inflation is also expected to slow on a yearly basis.

While the reading is unlikely to affect expectations of a 25basis point rate increase by the Fed in July, it could spur hopes that the U.S. central bank could end its monetary tightening soon after that.

Softer CPI numbers could be enough for the Fed to pause rather than continuing to hike through the year. On the contrary, strong numbers could be enough to see everything reversed and stocks under pressure again, said Stuart Cole, chief macro economist at Equiti Capital.

UK39;s Virgin Money climbed 7.5 to top the STOXX 600, while shares of Lloyds, Barclays and HSBC rose between 1.1 and 3 after the Bank of England said Britain39;s eight largest lenders showed no capital inadequacies.

If UK banks were adequately capitalised, that39;s probably true of most big…