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World stocks mostly rally; London dips

Deutsche Boerse said investors holding 89 percent of its capital had agreed to the firm's planned merger with the London Stock Exchange deal by August 12

The world's leading stock markets mostly rallied Tuesday, with company share prices benefiting from a more positive outlook for the US economy, but London eased after recent strong gains.

Around 1000 GMT, London's benchmark FTSE 100 index was down 0.1 percent compared with Monday's close.

In the eurozone, Frankfurt's DAX 30 surged 1.5 percent and the Paris CAC 40 jumped 1.6 percent in value.

Indices had rallied Monday, with Frankfurt soaring 2.1 percent, mainly on the back of last Friday's strong US jobs data, according to traders.

Markus Huber, a trader at City of London Markets, explained that the FTSE was Tuesday lagging its eurozone counterparts, partly owing to a fall in share prices for heavyweight miners trading on the London index.

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"The FTSE actually performed better in the past few weeks than some of the European indices and what we are seeing now is merely catching up by the rest of Europe," he told AFP.

Other analysts pointed to the pound's recovery as weighing on the FTSE.

In Asia, Tokyo's main index on Tuesday led a region-wide markets rally for a second session running, fuelled by hopes of more central bank stimulus and following last week's blockbuster US jobs report.

The gains extended a global advance that saw the S&P 500 on Wall Street close Monday at a record high for the first time in 14 months.

Tokyo's Nikkei index ended Tuesday with a gain of 2.5 percent, adding to the four-percent surge clocked up Monday.

Share prices were boosted by the yen's retreat against the dollar since a huge win for Japanese Prime Minister Shinzo Abe's coalition in weekend elections.

Abe said Monday his government would draw up new measures in his latest push to kickstart Japan's torpid economy.

The fall in the yen provided much-needed support for Japan's exporters after the haven currency surged in response to the Brexit vote.

The pound meanwhile surged back above $1.30 Tuesday, as dealers breathed a sigh of relief that Britain's ruling Conservatives had a new leader and the country a prime minister after David Cameron's resignation.

Theresa May will take the reins on Wednesday after her only opponent for a September leadership vote quit. The news provided a little certainty for the country as it looks to untangle itself from the EU over the coming years.

"An aggressive rebound from the pound is hampering the FTSE this Tuesday, while the eurozone indices are surging forth with their recovery," said Connor Campbell, analyst at traders Spreadex.

"In contrast to the FTSE, the DAX and CAC relished the relatively weakened euro."

Campbell added that "sterling?s rise... seems to have stemmed from Theresa May?s appointment as prime minister".

- Key figures at 1000 GMT -

London - FTSE 100: DOWN 0.1 percent at 6,678.16

Frankfurt - DAX 30: UP 1.5 percent at 9,983.90

Paris - CAC 40: UP 1.6 percent at 4,332.68

EuroStoxx: UP 1.6 percent at 2,932.71

Tokyo - Nikkei 225: UP 2.5 percent at 16,095.65 (close)

Hong Kong - Hang Seng: UP 1.7 percent at 21,224.74 (close)

Shanghai - Composite: UP 1.8 percent at 3,049.38 (close)

London - FTSE 100: UP 0.2 percent at 6,697.43

New York - DOW: UP 0.4 percent at 18,226.93 (close)

Dollar/yen: UP at 103.73 yen from 102.82 yen Monday

Pound/dollar: UP at $1.3178 from $1.2997

Euro/dollar: UP at $1.1106 from $1.1057