European stock markets moved higher, while the euro weakened and the dollar strengthened. Gains in the FTSE100 and DAX stood out, while long-term UK and German yields edged lower.
In European markets, the euro remained soft against the dollar, with euro selling and dollar buying leading the move amid rising crude oil futures and concerns over France's fiscal management. At one point, the euro fell below its low on the 5th, reaching levels not seen since May last year.
As the euro's decline accelerated against a backdrop of dollar strength, financial stocks attracted buying in London and real estate stocks rose, lifting the market overall. Buying also prevailed in Frankfurt following gains in US equities.
European bond markets were generally firmer, while some moves contrary to risk aversion were also seen as political and fiscal concerns continued.
US ratings agency Fitch indicated that pressure on France's credit rating could intensify, making concerns over fiscal and economic management a focus for the market.