European markets saw higher stocks, lower yields and a stronger euro, with levels of key indicators and currency movements reported. Key points included USD/JPY, EUR/JPY and EUR/USD, stock indexes and government bond yields as of the 6th close.
As of the 6th close, USD/JPY was ¥158.10, EUR/JPY was ¥178.09 and EUR/USD was $1.1265 per euro, indicating support for the euro against the yen and the dollar. The euro continued to strengthen in European markets, and reports said that Ms. Le Pen's fiscal proposals acted as a factor restraining moves in French long-term bonds. The euro was subsequently bought back and briefly reached an intraday high.
In equities and bonds, the FTSE 100 in London rose 43.75 points and Germany's DAX rose 194.98 points, with European stocks higher. In European bond markets, buying spread to German government bonds alongside a rebound in French long-term bonds, suggesting an overall improvement in investor sentiment.
Major indicators cited in domestic and overseas market developments included the negative contribution from German manufacturing new orders in August, trends in the UK PMI and changes in European retail sales, all of which affected market movements. USD/JPY moved in a range amid a stronger euro and weaker dollar, while comments related to the Bank of Japan were also cited as a factor driving yen-market volatility.
Overall, developments in European equity and bond markets interacted with movements in the foreign exchange market, resulting in a combination of a firm euro and gains in major stock indexes.