Europe open: Shares open higher as investors look for direction

The pan-European Stoxx 600 index was up 0.43% with all major regional bourses following suit. In the UK investors were awaiting a Bank of England policy meeting.

Investors also await new US jobless claims data later in the day, while the US Federal Reserve's annual bank stress test results are scheduled for release after the bell on Thursday.

“Stocks seem to be largely marking time until there is more clarity on economic data like inflation with the major European bourses a little higher this morning but well within ranges,” said Markets.com analyst Neil Wilson.

“More Fed speakers today to watch for in the shape of Bostic, Harker, Williams, Bullard and Barkin but the sentiment seems to be that if the Fed is going to more mindful of inflation than was judged for most of the last year then it ought to keep control of yields and allow for gently rising stock markets.”

In equity news, shares in Swiss laboratory instrument maker Tecan Group topped the Stoxx, up 11.83%, after agreeing to buy Paramit Corp of the US for $1bn.

Distribution specialist Bunzl rose after the company said said first-half revenue is expected to increase by around 1% at actual exchange rates and 6% - 7% at constant rates as a recovery in its base business, including the food service and retail sectors, was largely offset by an anticipated fall in Covid-related orders.