European stock markets edge higher, dollar drops

European stock markets nudged higher on Wednesday, while the dollar dropped, as investors tracked global trade war developments.

Approaching the half-way stage in Europe, London's benchmark FTSE 100 index was up 0.2 percent.

 In the eurozone, Frankfurt also won 0.2 percent and Paris gained 0.1 percent compared with Tuesday's closing levels.

World equity markets had slumped Monday as trade war fears took a heavy toll on valuations, while attempts to claw back lost ground lacked conviction Tuesday.

On oil markets Wednesday, both main crude contracts extended strong gains that had been triggered by the State Department warning US allies that they would be hit with sanctions if they did not halt Iran oil purchases by November 4.

APP