• Investors await Nvidia earnings for direction on AI trade
• Orsted and Novo Nordisk shares rebound
• Porsche seeks new CEO as Blume focuses on Volkswagen role
• German consumer sentiment expected to decline for third month

Aug 27 (Reuters) - European shares edged higher on Wednesday, recovering from their largest drop in nearly a month, as investors bought the dip, keeping an eye on political risks in France and awaiting earnings from artificial intelligence behemoth Nvidia for cues.

The pan-European STOXX 600 index (.STOXX) , opens new tab rose 0.4% by 0707 GMT.

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France's CAC 40 (.FCHI) , opens new tab gained 0.4%, following a three-week low hit in the previous session after concerns over a potential collapse of Prime Minister Francois Bayrou's government next month sparked a selloff in French assets.

The more domestically exposed mid-cap stocks (.CACMD) , opens new tab were nearly flat, with banking giants BNP Paribas and Societe Generale extending slim losses to a third straight session.

Three main opposition parties said on Monday they would not back Bayrou in a confidence vote, which he announced for September 8, over his plans for sweeping budget cuts.

If the government falls, President Emmanuel Macron could name a new prime minister immediately or ask Bayrou to stay on as head of a caretaker government. He could also call a snap election.

"A lot has already been priced in, especially for domestic names ... French banks, utilities, business services but I would expect uncertainty to remain for the next few weeks and that will be an overhang on French equities," said Christophe Hautin, equity portfolio manager at Allianz Global Investors. "As soon as we have clarity on the no-confidence vote, there could be some buying opportunities in the banking sector."

Stock indexes in Germany (.GDAXI) , opens new tab, Italy (.FTMIB) , opens new tab and Spain (.IBEX) , opens new tab added between 0.1% and 0.3%.

Investors are awaiting earnings from Nvidia (NVDA.O) , opens new tab, the world's most valuable company, later in the day for fresh cues on the AI trade, after a blistering rally in technology stocks hit a speed bump in August.

Shares of Orsted (ORSTED.CO) , opens new tab and Novo Nordisk (NOVOb.CO) , opens new tab, which have lagged this week, climbed 3.5% and 2%, respectively.

Porsche

London-listed shares of Rio Tinto (RIO.L) , opens new tab rose nearly 1% after the Anglo-Australian miner said it will streamline operations into three business units, Iron Ore, Aluminium & Lithium, and Copper.

Meanwhile, a survey on Wednesday showed sentiment among German consumers is expected to fall for the third time in a row in September, with households' growing concerns about possible job loss and uncertainty about inflation weighing on the mood.

https://www.reuters.com/markets/europe/european-shares-rise-after-selloff-focus-shifts-nvidia-results-2025-08-27/