European stock markets rally as volatility continues

European stock markets rally as volatility continues

European stock markets have staged a recovery after a week of precipitous falls and volatility.

London's FTSE 100 index was up nearly 1% in mid-morning trading, while Germany's Dax and France's Cac 40 were both up 1.5%.

Concerns over a weakening European economy and downwardly revised growth forecasts from the International Monetary Fund had unsettled investors.

But better-than-expected US industrial production data helped steady the ship.

The FTSE 100 has fallen 10% since early September, wiping £175bn off the value of listed businesses.

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