European stocks rose slightly on Wednesday, supported by a decline in oil prices that boosted investor sentiment, as traders awaited key data on business activity scheduled for release later today.
The European Stoxx 600 index rose by about 0.4 percent to 645.04 points by 07:08 GMT, while most major market indices in the region were trading higher, according to Reuters.
Investors are awaiting the release of the preliminary reading of the Purchasing Managers' Index (PMI) survey for the euro area, conducted by Standard & Poor's Global for September, which may provide new indicators on the performance of the region's economy.
Shares of the aviation and defense sectors topped the sector's gains, and "SABB" and "Exocense" were among the best-performing stocks.
Oil prices continued to decline, as investors evaluated the possibilities of increasing supplies. However, energy stocks rose 0.8 percent.
At the level of individual stocks, KWS shares declined by 6.1 percent, after the German seed production company announced a 3 percent decline in its annual net sales to 1.63 billion euros ($1.86 billion), below IBES estimates of 1.68 billion euros, affected by the decline in areas planted with beets and corn.
Adeen's shares fell by about 2 percent, after the Dutch payments company appointed Niklas Nijlen, from Klarna, as its new chief financial officer, who will assume his position starting February 1, 2027.
The presidential office in Seoul announced on Wednesday that South Korean President Lee Jae-myung and US President Donald Trump welcomed “significant progress” in discussions related to strategic investment projects, during a 30-minute meeting on the sidelines of the United Nations General Assembly meetings.
The meeting came after the South Korean Ministry of Industry briefed lawmakers on Tuesday on plans to implement the joint investment package between the two countries, worth $350 billion, which includes a gas power project in Texas, identified as a first potential investment, along with potential investments in nuclear energy and a liquefied natural gas project in Alaska, according to Reuters.
“The two leaders welcomed the significant progress made in discussions on strategic investment projects between the two countries,” National Security Advisor Wei Sung-Lak said during a press briefing.
Wei added that the two leaders also agreed, based on the joint fact sheet issued following their summit last November, to deepen cooperation and continue discussions on issues including nuclear fuel enrichment and reprocessing, nuclear-powered submarines, shipbuilding, and the transfer of wartime operational control (OPCON) from the United States to South Korea.
Wei pointed out that Trump reiterated his readiness to engage in dialogue with North Korea, while the two leaders agreed to remain in close contact, in an effort to advance the peace process.
Wei also said that President Lee indicated that the US-China summit scheduled for Thursday will be important for regional developments, including relations between South Korea and China.
On Friday, US Secretary of State Marco Rubio called for the rapid implementation of South Korean investment commitments, during a meeting with South Korean Foreign Minister Cho Hyun, according to the US State Department.
In a post on the “X” platform (formerly Twitter), Lee said that he had an extensive discussion with Trump about the progress made in investment projects, and that they reaffirmed their commitment to continuing to strengthen the alliance between the two countries.
The Indian rupee fell slightly on Wednesday, tracking the decline of Asian currencies, with the dollar index rising to its highest level since late July, supported by growing expectations of the US Federal Reserve raising interest rates in the near term.
The rupee fell 0.1 percent to 95.6950 rupees to the dollar, compared to the close of the previous session at 95.59 rupees, according to Reuters.
Asian currencies fell by rates ranging between 0.1 and 0.3 percent, while investors are closely monitoring oil prices and the size of bets on raising US interest rates. Interest rate futures markets are pricing in about 75 basis points of interest rate increases over the next 12 months.
A recent series of interest rate increases and tightening guidance by major central banks are at the forefront of currency markets, at a time when the conflict with Iran is pushing oil prices higher and raising concerns about inflation.
Brent crude fell by about 1 percent today to $98.4 per barrel, amid hopes that diplomacy during the United Nations General Assembly meetings will open the way to a settlement of the war in the Middle East.
US President Donald Trump said on Tuesday that he might “eliminate” Iran if an agreement is not reached, but at the same time he indicated the possibility of reaching an agreement soon.
Weak capital inflows and pressures from rising energy bills added pressure on the rupee, but repeated central bank interventions partly contributed to limiting the currency's losses.
Traders believe that this approach is likely to continue in the near term, especially after the large inflows of foreign currencies attracted by the central bank through one-time exceptional measures helped raise India's foreign exchange reserves to a record level.
Amit Babari, managing director of CR Forex, a currency market consultancy, said: “If the dollar/rupee maintains trading below the 95.70 level, the possibilities of moving towards 95-95.20 will increase, while the 96 level remains a strong ceiling with the support of the Indian Central Bank’s interventions.”
