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European stocks extend rally, FTSE cheers UK jobs report

FXStreet (Mumbai) - The European stocks extend its upbeat momentum and rallies on Wednesday, following a strong performance on the Asian indices as the markets are increasingly believing that the Fed will not hike rates at its September meeting.

Moreover, markets also cheer the positive fundamentals from the Euro zone and the UK, thus adding to the positive sentiment around the European equities.

The unemployment rate dropped to 5.5% in July, above expectations. The claimant count rate remained at 2.3% in August, its lowest rate since February 1975. While the wages continued to climb with pay excluding bonuses rising by 2.9%.

Germany's DAX 30 index pared losses and now trades 0.59% higher at 10,247, while the UK's FTSE 100 index gains 0.90% to 6,189. Among the other indices, the French CAC 40 index advances over 1% at 4,617, while the pan-European Euro Stoxx 50 index is also up over 1% to 3,243.

Later in the day, all eyes will turn to the US where the Fed starts its meeting to decide whether to finally lift its interest rates for the first time since 2006, or maintain the "wait-and-see mode" until December, which many analysts favour as the most appropriate month for a rate lift-off.

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