(Reuters) – European shares edged higher on Wednesday in the run-up to the release of key U.S. inflation data which will determine whether the Federal Reserve is nearing the end of its monetary policy tightening.

The pan-European STOXX 600 index was up 0.3% by 7:07 GMT.

The U.S. data, scheduled to be released at 1230 GMT, is expected to show the consumer price (CPI) index moderated to 3.1% year-on-year in June after May’s 4% rise.

A sharp slowdown in inflation could fuel bets that the Fed might end its market-punishing rate hikes after July.

Technology stocks were the top gainers among European sectors as shares of semiconductor firms, including ASML Holding (AS:ASML) (NASDAQ:ASML) and Infineon (ETR:IFXGn)(OTC:IFNNY), rose between 0.8% and 2.2% after Jefferies raised its price target on the stocks.

Among individual stocks, Norway’s largest bank DNB (OL:DNB) (OTC:DNBBY) opened 1.1% lower even as its second-quarter profit topped expectations, helped by a robust economy and higher interest rates.