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DAX Rallies On Fed Optimism

German stocks rose notably on Thursday after the Federal Reserve signaled it was ready to cut U.S. interest rates for the first time since 2008 and media reports suggested that Brussels will likely hold off on disciplinary action over Italy's budget.

The benchmark DAX was up 112 points or 0.91 percent at 12,422 after declining 0.2 percent the previous day.

Rate-sensitive banks were declining as expectations for interest-rate cuts sent
Euro zone and German bond yields lower.

Both Commerzbank and Deutsche Bank fell around 1 percent.

Investors were also reacting to a report by the New York Times that Deutsche Bank is facing another anti-money laundering investigation, this time from U.S. federal authorities.

Software firm SAP advanced 1.6 percent after arch-rival Oracle returned to sales growth.

Delivery Hero shares soared 9 percent after the online food delivery group raised its annual guidance for a second time in two months.

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