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STOXX 600 up 0.3%

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Germany's inflation slowed to 0.2% in August

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AstraZeneca ( AZN ) falls, lung cancer drug trial fails to improve

survival

(Updated at 0810 GMT)

By Pranav Kashyap

Sept 10 (Reuters) -

European shares climbed on Tuesday, boosted by the

real-estate sector, while investors also awaited the widely

expected rate cut by the European Central Bank later in the

week.

The pan-European STOXX 600 index rose 0.3% after

gaining nearly 1% on Monday.

Rate-sensitive real estate sector advanced 1% ahead

of the ECB's interest rate decision on Thursday.

With markets fully pricing in a 25 basis-point cut this

week, investors will keep a close eye on cues on likely rate

cuts in October and December.

"I don't think the ECB would prefer to be too dovish at this

point. There's no growth mandate for ECB, compared to the Fed

that has a dual mandate," said Geoff Yu, senior macro strategist

at BNY.

"Developments on the other side of the pond are still the

main drivers of sentiment right now. The balance is probably a

bit too lopsided in favour of the Fed."

Given the dominance of U.S. data, traders were also

focused on Wednesday's inflation report, which could provide

clarity on the size of the Federal Reserve's rate cut when it

meets next week.

The first debate between U.S. presidential candidates

Democrat Kamala Harris and Republican Donald Trump ahead of the

Nov. 5 election is due later in the day.

"There will be direct observance of the event. This is not

just the U.S. story... it's much more for European story as

well, given the tax burden that Europe faces," BNY's Yu said.

Germany's DAX ticked up 0.2% after data showed

the country's inflation slowed to 2% in August.

Elsewhere, British labour data showed average weekly

earnings, excluding bonuses, were 5.1% higher than a year

earlier in the three months to the end of July.

It's benchmark FTSE 100 was down 0.4%.

The STOXX was also supported by gains in technology

companies. Capgemini and SAP SE gained 7%

and 0.7%, respectively, after Oracle's upbeat results.

Heavy-weight AstraZeneca ( AZN ) shed 5.1%, capping the

STOXX's gains, after detailed study results showed its

experimental lung cancer drug did not significantly improve

patients' overall survival results.

The healthcare sector lost 0.8%.

Hearing aid companies were the biggest percentage decliners

after Apple ( AAPL ) said its new Airpods can work as hearing

aids. Amplifon fell about 6%, Sonova, Demant ( WILLF )

and GN Store Nord ( GGNDF ) lost between 3% and 4%.