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Aug 15 (Reuters) - European shares opened higher on

Thursday as benign inflation data cemented bets of a U.S. rate

cut in September, while gains in insurer Admiral also added to

the upbeat mood.

The pan-European STOXX 600 had risen 0.2% by 0710

GMT to trade near a two-week high and was on track for a third

straight session of gains.

The insurance sector gained the most, boosted by a

10.3% rise in Admiral after the British motor and home

insurer posted a better-than-expected 32% jump in first-half

pre-tax profit.

Mild U.S. inflation readings this week have cemented hopes

that the Federal reserve will lower borrowing costs in September

for the first time in 4-1/2 years.

Data earlier in the day showed that Britain's economy grew

0.6% in the second quarter, in line with economists'

expectations.

The benchmark FTSE 100 was trading flat.

Among other individual stocks, Adyen gained 6.4%

after the Dutch payments company beat half-year core profit

expectations.

Orsted lost 7.2% after the world's biggest

offshore wind farm developer reported its second-quarter

results.