The mood in financial markets was cautious on Monday as the partial shutdown of the U.S. government entered a seventh day and lawmakers appeared to be making little headway in raising the country's debt ceiling.

A bigger than expected fall in weekly U.S. jobless claims Thursday reinforced expectations that the Federal Reserve will start to reduce its monetary stimulus next month, sending stocks sharply lower and the dollar up.

LONDON (AP) The mood in financial markets remained fairly buoyant Thursday after an improvement in weekly jobless claims figures in the U.S. and as the main Wall Street stock indexes eyed new highs.

Unemployment in the 17-country eurozone hit a record high of 11.6 percent in September, official figures showed Wednesday, a sign the economy is deteriorating as governments struggle to get a grip on their three-year debt crisis.

An annual survey of finance directors finds the European debt crisis has made a hard-struck nation such as Greece a riskier investment choice than war-torn Syria.

Financial markets remained subdued Thursday as investors were reluctant to stake out positions ahead of key U.S. jobs data.

Unemployment in the 17 countries that use the euro hit its highest level since the currency was introduced back in 1999, official figures showed Monday, adding to fears that the region is in recession.