The underlying theme in the foreign exchange market is the divergence between the US and UK on one hand and the euro area and Japan on the other. That divergence, however, may not explain the developments in the other capital markets.
The US S&P 500 and the Dow Jones Stoxx 600 in Europe recorded its worst week in a couple of years. US and UK 10-year yields declined by the most this year (~14 bp) and are levels last since in the middle of last year.