The euro and European stocks rose on Wednesday due to a positive German business sentiment report, while ongoing concerns about the US economy kept the dollar weak. This led to increased interest in commodities like oil and gold, as global demand remains strong despite uncertainties in the US. German corporate sentiment improved in March, according to the Ifo institute, which has helped boost optimism about the global economy. "It supports the idea that Germany is moving away from the euro zone as a whole," she stated, noting that it also indicates the ECB will not be lowering rates in the near future. The Ifo economic research institute reported an increase in its business climate index to 104.8 from 104.1 in February, which helped to reduce investors' flight to safety and decrease demand for safe-haven euro zone government bonds. This news came after reports of a decrease in US consumer confidence and a record drop in home values in January, leading to concerns about Americans spending less. The FTSEurofirst 300 index initially dropped but later recovered slightly, while Germany's DAX remained steady and London's FTSE 100 index decreased by 0.3 percent. Swiss mining company Xtrata experienced a significant decline of approximately 9 percent following the breakdown of takeover discussions with the world's largest iron ore miner Vale. Just the day before, European stocks had increased by about 3 percent, led by banks, after JPMorgan significantly raised its bid to acquire rival Bear Stearns, alleviating concerns within a sector impacted by the credit crunch. In Asia, Japan's Nikkei closed with a 0.3 percent decrease, while MSCI's evaluation of other Asian stock markets showed a 0.6 percent increase. The MSCI world equity index saw a slight 0.2 percent rise. The dollar showed weakness against a range of major currencies, reflecting ongoing worries about the state of the US economy. The dollar index decreased by 0.6 percent, with the euro gaining half a US cent following the Ifo report, reaching approximately $1.5646. The 10-year Bund yield remained relatively stable at 3.872 percent, while the 10-year yield for US Treasuries dropped by 2.4 basis points to 3.517 percent. US light crude for May delivery rose by 73 cents to $101.94, and gold saw a slight increase to $940.50 per ounce from around $934.60 per ounce late in New York on Tuesday.