The violence in France continued for a 12th straight day overnight, as rioters in the southern city of Toulouse ordered passengers off a bus and then set it on fire and pelted police with gasoline bombs and rocks. Youths torched another bus in the northeastern Paris suburb of Stains. Though the political situation in Berlin and the riots haven't been driving markets as much as the interest rates, they are on traders' minds, Hughes said.
"It's all small bits of background news that are lingering uncertainties," he said. "Obviously it's not very good news flow, and although it is not being acted on actively, it's a depressing thing for anyone watching."