European markets continued to see higher stocks and a stronger euro, with euro/yen briefly rising to the mid-¥177 range. Dollar/yen traded quietly within its range. Major stock indexes were broadly higher, and European bonds were bought.
European equities were broadly higher. FTSE100 closed up 31.55 from the previous day at 10761.33, while DAX closed up 162.88 at 25981.09. Both London and Frankfurt markets remained firm.
Euro/yen rose as high as ¥177.26, with buying by European investors continuing at times, although it also struggled to extend its gains at the session high. Euro/U.S. dollar was around $1.1205, while euro crosses such as euro/Australian dollar also rose. Dollar/yen was bought up to the ¥158 range but failed to hold there and was pushed down toward ¥157.60.
In long-term interest rates, the gilt yield rose to 5.192% (+0.092%), while the German government bond yield rose to 3.292% (+0.030%). Economic data showed German retail sales in September falling 2.0% month on month and 2.3% year on year. The revised October German manufacturing PMI was 54.2, the euro-area manufacturing PMI was 52.7 and the U.K. manufacturing PMI was 52.8, presenting a mixed picture of generally firm and weakening economic indicators.
European bond markets were broadly higher, and risk appetite in European markets remained intact alongside movements in equities and foreign exchange.