European shares rose modestly on Wednesday morning as oil prices fell for a sixth consecutive session and a survey showed stronger than expected growth in eurozone business activity.
The pan-European STOXX 600 was up 0.2% at 643.15 points by 08:30 GMT, with most major regional markets also trading higher. Banking shares led sector gains, while technology stocks climbed to a four-week high and were on course for a sixth straight session of advances.
Investors were weighing an encouraging September business survey. S&P Global data showed eurozone activity expanding at its fastest pace in more than three years, defying expectations of a slowdown. The survey also found that companies faced a sharper rise in operating costs, keeping inflation concerns in view.
Lower crude prices offered some relief after a recent oil rally had pushed up inflation worries and bond yields. Oil’s decline followed Saudi Arabia’s restart of operations at a key pipeline, though investors remained alert to whether the easing in prices would last.
The market’s modest rise reflected both developments: stronger economic activity supported shares, while persistent cost pressures left investors watching the outlook for inflation and European Central Bank interest rates.
