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Aug 16 (Reuters) - European shares opened higher for the

fourth straight session on Friday as upbeat risk sentiment

prevailed across global markets and investors geared up for a

September rate cut by the Federal Reserve.

The pan-European STOXX 600 was up 0.3% by 0710 GMT,

at two-week highs. The benchmark was set to witness its best

week since May 6.

Almost all regional bourses were trading in the green, with

Italy's FTSE MIB outperforming peers with a 2.1% gain.

London's FTSE 100 ticked 0.2% lower after British

retail sales rose 0.5% in July, in line with forecasts.

Bayer rose 7% after it won a legal victory in its

fight to limit liability from claims that its Roundup weed

killer causes cancer.

Stellantis ( STLA ) rose 2.6% despite the

European-American automaker being sued by shareholders in the

U.S. who said the firm defrauded them by concealing rising

inventories and other weaknesses.

UBS gained 1.1% after the Swiss bank said it will

liquidate a $2 billion real estate fund it acquired when it

bought Credit Suisse.

(Reporting by Pranav Kashyap in Bengaluru; Editing by Mrigank

Dhaniwala)