European markets were generally weak on the 7th, while the euro pared its losses against the dollar. Dollar-yen briefly rebounded but was influenced by movements in long-term US yields, and risk aversion strengthened across the market.
Major European equity indexes closed lower on the 7th. The FTSE 100 Index stood at 10,458.50, down 83.19 points from the previous business day, while Germany's DAX stood at 25,104.36, down 344.83 points from the previous day, weighed down by declines in several resource and financial stocks. In European bond markets, UK gilts fell, while German government bonds edged higher.
Dollar-yen fell to ¥157.85 at one point before rebounding to around ¥157.93. Euro-yen fell to ¥176.55 in range-bound trading near its low, with ¥176.22 watched as support. Amid broad euro selling, euro-dollar hit an intraday low of $1.1165 before moving into a range around the $1.12 level.
London stocks fell for the first time in 4 sessions following the decline in European equities. Frankfurt stocks also fell for the first time in 4 sessions, with notable declines in Fresenius Medical Care, Infineon Technologies and Deutsche Bank. At times, the market's headwinds eased depending on movements in long-term US yields, but overall market conditions remained weak.
As for European economic indicators, Germany's industrial production in August rose 2.0% month on month and 2.3% year on year, while France's trade deficit widened. France's current-account deficit also widened slightly, and concerns over fiscal and political management weighed on the market.