LONDON: European stock markets fell yesterday as the dollar jumped to a five week high against the euro amid improved expectations about the pace of recovery in the world's largest economy.

The FTSE 100 index of leading British shares was down 41.84 points, or 0.8 percent, at 5,280.52 while Germany's DAX fell 43.94 points, or 0.8 percent, to 5,773.71. The CAC-40 in France was 27.60 points, or 0.7 percent, lower at 3,819.02.

The euro was down 0.4 percent at $1.4797, having earlier fallen to $1.4757, its lowest level since early November. Before Friday's news that US employers shed a much lower than anticipated 11,000 jobs in November and the unemployment unexpectedly fell to 10 percent, the euro was trading near its 16-month high of $1.5144.