LONDON (Reuters) - European shares rose on Wednesday, boosted by strength in basic resource and oil stocks, while French aeroplane seat-maker Zodiac plummeted after its latest profit warning.
The pan-European STOXX 600 (STOXX) index gained 0.4 percent in early deals. Potentially divisive elections and a U.S. Federal Reserve policy meeting that could signal how much monetary tightening to expect during the remainder of the year are events in focus for market participants.
A recovery in oil prices after a sharp sell-off over the past week spurred a relief rally in basic resources stocks. The sector index (SXPP) were the top gainers, up 2 percent, followed by an index of major European oil-related stocks (SXEP) which rose 1.3 percent.
Oil prices rebounded after a surprise U.S. crude stockpile drawdown eased worries about a supply glut.
Amec Foster (L:AMFW) , Wood Group (L:WG) and Tullow Oil (L:TLW) were among the best-performing oil services and oil producer stocks, up 3 to 3.5 percent.
British drugmaker Hikma (L:HIK) was up 7.2 percent after it posted a rise in full-year operating profit, up 2.4 percent on growth in its injectables and branded business, which offset weakness in its generic drugs.
Zodiac (PA:ZODC) fell 12.8 percent, the top European faller, after it warned on profit after the close on Tuesday. The company, which engine maker Safran (PA:SAF) is seeking to acquire, said it sees full-year operating income falling 10 percent against a previous forecast of a 10-20 percent rise.
Zara owner Inditex (MC:ITX) fell 1.8 percent after it posted a 10 percent rise in profit for 2016. The broader European retail sector (SXRP) was the worst-performing sector, down 0.7 percent, with Swedish peer H&M (ST:HMb) also down 4.5 percent.