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European stocks rally as Fed hike prospects fade, ignore PMIs

FXStreet (Mumbai) - Stocks on the European bourses clinched to opening gains and extended further, tracking the positive lead from their Asian and Wall Street peers, after the dropping 2015 Fed rate hike bets following the poor US NFP data released on Friday.

While markets completely ignored sluggish final services PMI readings from across the Euro area economies. The 19-nation bloc’s services PMI booked 53.7 points in Sept, down from 54.4 a month ago. The preliminary survey stood at a 54.0 result. While the services PMI for the UK booked 53.3 points last month, against estimated 56 points.

Glencore continues to boost the FTSE

The German utility company RWE continues to outperform (+3.75%), partially offsetting the losses incurred by the car-maker Volkswagen (-4.37%). While the FTSE extends the ongoing rally backed by the UK’s mining giant, after reports released over the weekend stated that Glencore is in talks with potential buyers for its agriculture business. Glencore now rallies +7%.

Meanwhile, Germany’s DAX pared gains to 9,750 points, up 2.08% while the UK’s FTSE gains 1.93% to 6,248. Among the other indices, the French CAC 40 index rallies 2.77% to 4,580, while the pan-European Euro Stoxx 50 index rockets +2.50% to 3,165 points.

GBP/USD: Hovers around 1.52

The GBP/USD pair was offered to a low of 1.5172 following the dismal UK services PMI report, before regaining some poise to trade around 1.52 handle.
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