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European stocks rally on corporate news, UK data

FXStreet (Mumbai) - The European stocks extend the opening gains and climb further on the back of higher resource and mining stocks led by rising commodity prices. The European equities were also boosted by the solid performance seen on the Asian indices.

Markets completely shrugged off weak German industrial production data while enjoyed strong gains after the UK factory output showed a strong rebound in August. The total industrial production in the UK rose 1% m/m in Aug versus expectations of a 0.3% gain and rebounded from -0.4% seen in July. While the manufacturing output also rose above expectations and to fresh 6-month highs (0.5% m/m vs.-0.8% exp.)

FTSE lifted by miners, DAX gains on VW news

The German index shot higher, mainly driven by sharp gains in the shares of the German car-maker, Volkswagen (+5.5%), after its CEO Mueller announced that the company would recall the cars affected by the emission-scandal in January, while the fix is expected to be completed by the end of next year. The FTSE remains supported amid M&A deal between Brewer AB InBev and its rival SABMiller while the miners led the index higher. Anglo American rose over 10% while Glencore was seen nearly 3.5% higher.

Meanwhile, Germany’s DAX rallies to 10,019 points, up 1.19% while the UK’s FTSE gains 0.73% to 6,372. Among the other indices, the French CAC 40 index rallies 0.89% to 4,702, while the pan-European Euro Stoxx 50 index advances +1.02% to 3,253 points.

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