There's a more comfortable feeling across the market. People are starting to look back at fundamental valuations and that has pushed 'old economy' stocks back up.

European markets are set to follow the outlook for the dollar. The dollar is getting stronger and European currencies are weakening and that is probably taking European markets higher again.

This will lead to rising unemployment levels in Germany.

The euro has clearly accelerated some people's focus on cost-saving synergies.

It's very quiet and lackluster. I was looking for the markets to come up slightly because of a modest rally in the Deutsche mark-dollar. But even that has started to come down again.

Part of this is political posturing. But what companies are realizing is that arrival of the euro is making German corporate costs structures increasingly uncompetitive.