LONDON, Aug 12 - European stocks and U.S. futures rose slightly on Monday, while the yen slipped as a holiday in Japan removed one source of recent volatility, and investors looked ahead to U.S. and Chinese economic data.
Markets were calmer on Monday with Europe's STOXX 600 index , up 0.2% after finishing last week 0.3% higher. Germany's DAX index , was up 0.3% and Britain's FTSE 100 , was 0.5% higher. "The balance of risks is that policy has been too tight for too long. Now you're starting to see that show up in the labour market."
Japan's yen slipped, with the dollar up 0.65% at 147.57 yen . The dollar index was little changed at 103.22 as the euro and pound traded flat.A sharp rally in the Japanese currency in July and August has wrong-footed investors, forcing them to unwind so-called carry trades in which they borrow in Japanese yen to buy dollars and other currencies to invest in higher-yielding assets.
"The sharp reduction in short yen positions held by leveraged funds ... has likely provided some reassurance as well that the unwind of yen-funded carry trades is now more complete."