Europe midday: Shares extend gains ahead of Fed; Logitech tanks

European shares made strong gains on Wednesday as investors awaited a decision on interest rates by the US Federal Reserve later in the day and the European Central Bank on Thursday.

The pan-Regional Stoxx 600 index was up 0.64% in early deals, with all major bourses higher.

"Having seen US CPI for May come in at a two year low of 4%, in numbers released yesterday, market expectations are for the US central bank to take a pause today with a view to looking at a hike in July," said CMC Markets analyst Michael Hewson.

"Of course, this will be predicated on how the economic data plays out over the next 6-7 weeks but nonetheless the idea that you would commit to a hike in July begs the question why not hike now and keep your options open regarding July, ensuring that financial conditions don’t loosen too much."

Industrial production in the Eurozone recorded a better-than-expected rise in April, rebounding from a slump in March, official data showed on Wednesday.

Industrial production in the single-currency bloc rose 1% month-on-month in April for a 0.2% year-on-year rise as a sharp rise in the output of capital goods offset reduced production of consumer goods. March's revised figures revealed a 3.8% slump.

Capital goods output jumped 14.7% month-on-month in April after a 15.2% plunge in March, more than compensating for a 2.6% monthly fall in the production of durable consumer goods and a 3.0% fall in non-durable goods.

Production in Ireland, where the figures distort overall statistics surged 21.5%.

In the UK, official data showed the economy returned to growth in April as gross domestic product rose 0.2%, in line with expectations, following a 0.3% contraction in March.

The services sector was the main contributor, growing by 0.3% in April after shrinking by 0.5% the month before.

In equity news, shares in US-Swiss computer accessories maker Logitech plunged on Wednesday after chief executive Bracken Darrell quit with immediate effect to pursue another opportunity.

The announcement, eleased after the close of share trading on Tuesday, caught markets by surprise. Investors responded to the news by sending the shares 11% lower.

Darrell, who became CEO in 2013, will be replaced on an interim basis by board member Guy Getch, the company said.

Belgian discount supermarket chain Colruyt surged despite reporting lower annual earnings on Tuesday, citing inflation and substantial cost increases that it has been unable to fully pass on to customers.

Games Workshop shares gained after saying it expects to post increased annual profit of at least £170m, up from £157m a year ago, driven by a strong rise in revenue and licensing income.

Shares in specialst plastics maker Victrex slid as it warned annual profits would be sharply lower as group volumes continued to fall due to industrial headwinds.

Ladbrokes owner Entain tanked after it raised around £600m in a discounted placing to help fund the acquisition of Polish sports betting operator STS Holdings.

Reporting by Frank Prenesti for Sharecast.com