In European markets on the 28th, higher stock prices, a weaker yen and a stronger euro were the main themes, with dollar-yen rising to the lower 158-yen range. Major stock indexes were slightly higher in some markets as investors reacted while monitoring fiscal and monetary policy developments.
In market trading on the following 28th, dollar-yen rose to ¥158.15 per dollar, up ¥0.33 from the previous day. Euro-yen traded at ¥176.30, up ¥0.83, while euro/US dollar rose to $1.1148, an increase of $0.0030. Major currency pairs remained subject to position adjustments as markets assessed US interest-rate trends.
European equity markets were generally firm. The FTSE 100 rose to 10,694.50, up 7.96 from the previous day, while Germany's DAX rose to 25,704.02, up 113.25. In bond markets, UK gilt yields rose, while German government bond yields were 3.371%, up 0.011% from the previous day.
As a European economic indicator, Germany's November consumer confidence index from the GfK survey deteriorated to -30.8 from -30.6 previously, making the trend in business sentiment a key market focus.
Position adjustments continued ahead of long-term interest-rate developments and corporate earnings announcements. Dollar-yen's rise contributed to yen weakness and was also observed at times as a source of pressure for a weaker euro and stronger dollar.
Overall, European markets are expected to remain focused on assessing the effects of the FOMC and ECB outlooks and developments in the Middle East, alongside a rebound in equities and volatility in currency markets.