ASML jumps on report of being exempted from new US trade rule
Euro zone inflation data due at 0900 GMT
Airbus advances 4 after quarterly results

July 31 Reuters European shares climbed 1 on Wednesday, driven by a raft of corporate updates, while heavyweight ASML led overall gains on report that the Dutch chip equipment manufacturer would be exempted from a new U.S. rule on foreign chip equipment exports.

The panEuropean STOXX 600 index was trading at a twoweek high of 519.42 points, as of 0821 GMT. The benchmark index has gained 1.5 so far this month.

Shares of ASML surged 6 after Reuters reported that a new U.S. rule on foreign chip equipment exports to China would exempt some allies, including the Dutch manufacturer.

The regional tech sector advanced 2.7.

The aerospace sector traded 1 higher, with Airbus climbing 4 after the world39;s largest planemaker unveiled its secondquarter results.

French benchmark CAC 40 Index gained 1.

On the data front, French inflation accelerated to 2.6 in July, but was still below forecast.

Euro zone flash inflation data for July is due at 0900 GMT and will provide traders cues on the European Central Bank39;s policy trajectory. Markets are anticipating two more 25basispoint rate cuts this year and have priced a 65 chance of a September rate cut, as per LSEG data. .

The markets are betting on a September rate cut by the ECB and an inline European inflation number plus the Fed keeping the door open to its first cut in September…