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* STOXX 600 eyes best day in nearly four weeks

* Treasuries rally sharply after US holiday

* Miners, auto stocks lead rebound

Oct 10 (Reuters) - European stocks rebounded sharply on Tuesday as dovish comments from U.S. Federal Reserve policymakers bolstered sentiment a day after the conflict in the Middle East sparked a rush to safe assets.

The pan-European STOXX 600 rose 1.5%, headed for its biggest one-day percentage gain in almost four weeks.

The index looked set to wipe out Monday's 0.3% fall after military clashes between Israel and the Palestinian Islamist group Hamas sent oil prices surging and investors seeking the safety of bonds and gold.

The 10-year U.S. Treasuries rallied sharply following a holiday on Monday as top-ranking Fed officials indicated that rising yields on long-term U.S. Treasury bonds, which directly influence financing costs for households and businesses, could steer the Fed from further increases in its short-term policy rate.

"The predominant driver of price action this morning is markets clinging to Fedspeak that suggests the central bank is at the end of the tightening cycle," Laura Cooper, senior macro investment strategist for iShares EMEA at BlackRock.

"What we're likely to see is market shift focus back to fundamentals around growth and inflation outlook, particularly the US CPI print that is going to be the next catalyst."

Data on Thursday is expected to show U.S. consumer prices cooled in September, potentially taking the pressure off the Fed to raise rates again next month.

Meanwhile, ECB policymaker Francois Villeroy de Galhau said that current euro zone interest rates, set last month at a record 4%, were at a "good level", adding that now was not the right time for further increases.

European stocks touched six-month lows earlier this month as European and U.S. bond yields hit multi-year highs on bets that major central banks will keep interest rates higher for longer.

While stocks have bounced off the lows, the upcoming earnings season, economic data and the moves in oil prices will be key in determining the trajectory for markets into the year-end.

All the major sectors were higher, with miners, automakers and travel & leisure indexes leading gains in Europe.

Oil & gas stocks were the smallest gainers as crude prices eased after rallying more than 4% in the previous session.

Among individual stocks, Elis rose 4.0% after Brazil-based asset manager BWGI said it would acquire 6% a stake in the French cleaning services company.

Euroapi slumped 57.7% after the French pharmaceutical company cut its 2023 guidance and suspended its mid-term targets. (Reporting by Sruthi Shankar in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)