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Philips up after announcing deal with US government

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Defence stocks rebound after Tuesday's sharp selloff

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U.S. CPI on tap at 1230 GMT

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STOXX 600 up 0.7%

(Updated at 0933 GMT)

By Johann M Cherian and Ozan Ergenay

April 10 (Reuters) - European shares rose on Wednesday,

led by gains in technology-related stocks ahead of a crucial

inflation report out of the United States, while Barry Callebaut

was on track for its best day in over five-and-a-half years

following results.

The pan-continent STOXX 600 added 0.7% by 0833 GMT,

led by a 1.5% gain in the technology sector following

upbeat quarterly revenue from Taiwan chipmaker TSMC.

Tech-related stocks were among the top performers in the

previous quarter, benefiting from the global enthusiasm for the

prospects of artificial intelligence.

Topping the STOXX, Barry Callebaut jumped 6.8%

after the chocolate maker reported upbeat half-yearly revenue

helped by increasing cocoa prices. The broader good and

beverages index gained 0.5%.

Since the start of April, the benchmark index has traded in

a tight range, not far away from record highs hit last month, as

caution dominated the mood ahead of U.S. March consumer prices.

The data, due at 1230 GMT, could offer clues on when the

most influential central bank might begin to reduce interest

rates. Market bets for a June rate cut currently stand at 53%

after recent data pointed to a still resilient economy.

"The U.S. CPI print will be heavily in focus after the

last two prints came in strongly... If there is a third strong

reading, it would be increasingly difficult to explain that as

just a temporary blip," analysts at Deutsche Bank said in a

note.

Later in the week, the focus will be on the European

Central Bank's monetary policy meeting, where traders expect

rates to be left unchanged.

Among others, Koninklijke Philips surged 2.8% after

the medical equipment maker reached an agreement with the U.S.

government on a consent decree about the sales of its new sleep

apnea machines.

Defence stocks including Senior, Rheinmetall

, SAAB and Leonardo gained between

0.5% and 2.0%, following Tuesday's sharp sell-off.

Shares of wind turbine producers Siemens Energy

and Nordex added 2.8% and 3.7%,

respectively. The move comes after the European Commission said

it will investigate subsidies received by Chinese suppliers

destined for Europe, in the bloc's latest move to shield

domestic firms from cheap clean tech products.

Italgas slipped 1.1% after the Italian gas

distributor sent a preliminary offer worth 4-5 billion euros

($4.3-5.4 billion) for its main domestic rival 2i Rete Gas, as

per a report.

Elsewhere, Norway's benchmark index gained 0.8%

after data showed the core inflation rate fell below expectation

in March, supporting the central bank's view that interest rates

will decline later this year.

(Reporting by Johann M Cherian and Ozan Ergenay; Editing by

Janane Venkatraman and Eileen Soreng

)