Stocks and US futures rebound as dollar slips

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LONDON/SYDNEY, Oct 24 - European shares and U.S. stock futures rallied on Thursday after equity markets suffered a sell-off the previous day, while the dollar slipped as the euro, yen and pound perked up.

Corporate earnings reports were also helping the mood in Europe, with Renault , Unilever , and Hermes , all rising after releasing results. A spate of strong U.S. data and less dovish communication from Federal Reserve officials have lessened the odds of aggressive rate cuts in the months to come. A slightly better-than-expected reading in Germany's purchasing managers' index , a gauge of the health of the private sector, gave the euro a slight lift. A weaker than anticipated euro zone-wide PMI limited gains, however.

All the same, strong economic data have led traders to question whether the Fed can afford to be cutting rates too deeply at each of its two remaining meetings this year. Money market prices imply just 40 basis points of easing this year.

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