The chairman of the Federal Reserve Ben Bernanke has said that the US economy is nearing the start of a recovery, lifting stock markets around the world.“The prospects for a return to growth in the near term appear good,” Mr Bernanke told a conference in Wyoming.
On Wall Street, the Dow Jones index rose more than 1%, while European markets were also sent higher.
Markets were also buoyed by data showing sales of existing US homes rose by more than 7% in July.