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European stocks gain for third straight session

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The Stoxx Europe 600 Index was up by 1 per cent although some analysts cautioned investors against complacency.

European stocks rose for a third straight session, with sentiment boosted by upbeat global economic data and bets that the Federal Reserve will reduce interest rates next month.

Equities are recovering after a rough start to August as resilient economic data calm concerns about a US recession. Figures on Wednesday showed easing US inflation, and were followed by encouraging data from Japan and China on Thursday.

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