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European stocks rally, Wall Street slumps on interest rate concerns

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Stock markets had a mixed showing Thursday as European indices rallied while Wall Street slipped on concerns over interest rates.

European Central Bank policymakers delivered another interest rate increase as anticipated, with eurozone consumer prices still rising fast.

The US Federal Reserve, as expected, also raised borrowing costs again on Wednesday as it seeks to bring inflation down further, but there remain lingering worries of more aggressive actions ahead. Data out Thursday showed that the US economy confounded expectations with growth accelerating in the second quarter.

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