Inditex tops STOXX 600 on upbeat trading update
Euro zone business activity expands at fastest rate in a year
STOXX 600 up 0.5, led by retail and technology stocks

June 5 Reuters European shares gained on Wednesday, mirroring global sentiment as a soft U.S. labour market data firmed bets of a rate cut from the Federal Reserve, ahead of the European Central Bank39;s key rate verdict later this week.

The panEuropean STOXX 600 was up 0.5 as of 0840 GMT, rebounding from the previous session39;s losses.

Wall Street ended higher on Tuesday and Asian equities broadly rose on Wednesday after data showed U.S. job openings fell in April, signalling an easing labour market and firming bets of a Fed rate cut in September.

If you39;re kind of sanguine about the labour market and you see that earnings revisions are broadly positive in the U.S., that gives you a positive backdrop for equities, said Richard Flax, chief investment officer at Moneyfarm.

Most sectoral indexes traded higher, with retail advancing 1.4 to hit an over twoyear high as Zaraowner Inditex jumped 4.7 on betterthanexpected current trading numbers in its firstquarter results.

Spain39;s benchmark IBEX index was up 0.6.

Adding to the sector39;s gains, WH Smith advanced 3.7 after the British retailer said it was well positioned for the peak summer, betting on strong travel demand.

Investors are now focused on the ECB39;s key interest rate decision on Thursday, where it is expected to ease borrowing costs by…