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July 30 (Reuters) - European shares opened higher on

Tuesday, boosted by gains in technology and oil stocks, while

investors held back from placing big bets ahead of the Federal

Reserve's meeting and Euro zone inflation data.

The pan-European STOXX 600 index was up 0.2% at

512.61 points by 0716 GMT, with the food and beverages sector

capping gains.

Spirits maker Diageo ( DEO ) fell 8% after it reported a

4.8% decline in annual profit that was short of analyst

expectations.

Basic resources fell 0.7% as base metals prices

largely slipped due to slowing global growth momentum and

risk-off sentiment, with aluminium and zinc hitting three-month

lows.

BP was up 2% after the oil giant reported

second-quarter profit of $2.76 billion, beating market

expectations, while increasing its dividend and extending its

share repurchasing programme. The company's update boosted the

oil sector by 0.7%.

Among other individual stock moves, Standard Chartered ( SCBFF )

gained 4.7% after the bank announced its largest share

buyback of $1.5 billion and raised its annual earnings forecast.

St James's Place soared 17.8% as the British wealth

manager said it plans to cut tens of millions of pounds of

costs.

The technology sector was up 0.5% ahead of

Microsoft's ( MSFT ) results later in the day.

Meanwhile, the U.S. Federal Reserve will begin its two-day

monetary policy meeting later in the day.

Investors also await Euro zone inflation data, expected at

0900 GMT.