Shares rises on signs of US economic recovery
The Dow Jones index rose today on the back of positive economic data and followed gains seen over the last week.
In seven out of the last eight days, the Dow Jones has risen. By mid-session in New York, the index gained 0.6% to 9,737.3 points with European shares rising in response.
London’s FTSE 100 index closed at its highest level in nearly a year today, gaining 82 points (1.6%) to 5124.13.
Meanwhile, in Europe, the Cac 40 in Paris and Frankfurt’s Dax both closed higher at 1.6% and 1.3% respectively.
The main Australian share index had earlier closed up 2.2%, while Hong Kong’s Hang Seng gained 1.8%.
The gains were partly fuelled by US Fed Chairman, Ben Bernanke’s comments who said: “From a technical perspective, the recession is very likely over.”
Furthermore, other data showed a marginal rise in US consumer prices – but above expectations, reinforcing hopes the economy is in recovery mode.
A further sign of recovery were the US monthly trade deficit figures – which narrowed in May, but then widened in June and July.
Finally, the Commerce Department yesterday revealed a rise in US retail sales for the month of August, helped by the US Government’s Car Allowance Rebate System (CARS), branded the “cash for clunkers” scheme.
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