June 12 (Reuters) - European shares opened higher on Wednesday, supported by a drop in euro zone bond yields, while investor focus shifted to crucial U.S. inflation print and Federal Reserve's monetary decision due later in the day.

The pan-European STOXX 600 was up 0.4%, as of 0723 GMT, after two sessions of declines amid French political uncertainty.

The euro zone government bond yields dropped on Wednesday, a day after notching multi-month highs as markets await U.S. data and the Fed's interest rate verdict later in the day.

Most sectors traded higher, led by a 1% gain in European lenders, while automobile stocks underperformed with a 0.5% drop.

Data showed German inflation accelerated in May due to higher service prices, confirming preliminary data. The country's benchmark DAX index was up 0.5%.

Shares of Umicore fell 6.3% to the bottom of the benchmark index after the Belgian metal recycling group issued a profit warning for 2024, becoming the latest supplier hit by a slowing electric vehicle market.

Legal & General dropped 3.2% even after the British insurer said it would offer a 200-million-pound ($254.86 million) share buyback and merge its investment units.

(Reporting by Shristi Achar A in Bengaluru; Editing by Sherry Jacob-Phillips)