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Euro Stoxx 600 rallies 2%, Dow futures up 300 points

FXStreet (Mumbai) - The risk-on sentiment returned with a bang, sending the pan-European Euro Stoxx 600 equity index higher by 2% after the Chinese shares ended with gains and the EU GDP was revised higher.

The index currently trades 2% higher at 362.00. Among the index stocks, the UK-listed Amlin rallied 32% after it accepted a GBP 3.5bn bid from Mitsui Sumitomo. The Greek lender Alpha Bank and the German lender Commerzbank AG strengthened 8% and 7.4% respectively. Meanwhile, shares in Whitbread fell 3% as it plans cost savings and will raise some of its prices to counter the substantial impact of enforced wage increases at its Premier Inn hotels and Costa Coffee businesses.

The data released earlier today revised the second quarter Eurozone GDP higher to 1.5% year-on-year from the initial estimate of 1.2%. Quarter-on-quarter, the GDP was revised higher to 0.4% from 0.3%.

The positive action in the Chinese equities, followed by an upward revision of the Eurozone GDP pushed stocks higher across the board. The risk-on sentiment also hit the US shores, sending the Dow futures up by 300 points.

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