World stocks hit their highest in more than a year and the dollar fell sharply against the yen on Wednesday as expectations of a rise in Federal Reserve interest rates receded after weak U.S. economic data.
Emerging market shares led the charge, touching their strongest levels since July 2015 as investors sought yield with interest rates likely to stay low for a prolonged period.
But European shares dipped in early trade. The Stoxx 600 index fell 0.2 percent led lower by banks .SX7P, for whom rock-bottom interest rates promise tough times. The index nonetheless remained close to eight-month highs.
The top gainers in Europe were energy shares, up 0.7 percent .SXEP, as oil prices rose, even though many market participants remained doubtful producers would reach a deal to freeze output.
Euro zone government bond yields fell as some investors bet the weak U.S. data, which followed weaker-than-expected jobs numbers on Friday, would pressure the European Central Bank to ease monetary policy further. Then ECB meets on Thursday.