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Markets rise on US recovery hopes Markets rise on US recovery hopes
(10 minutes later)
Stock markets have risen around the world after Federal Reserve chairman Ben Bernanke said the US economy was nearing the start of a recovery.Stock markets have risen around the world after Federal Reserve chairman Ben Bernanke said the US economy was nearing the start of a recovery.
"The prospects for a return to growth in the near term appear good," Mr Bernanke told a conference in Wyoming."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.On Wall Street, the Dow Jones index rose more than 1%, while European markets were also sent higher.
But the Fed boss said unemployment, which is expected to top 10% in the US, would fall "only gradually".But the Fed boss said unemployment, which is expected to top 10% in the US, would fall "only gradually".
Mr Bernanke was speaking as data showed sales of existing US homes rose by more than 7% in July.Mr Bernanke was speaking as data showed sales of existing US homes rose by more than 7% in July.
That was the largest monthly increase in the 10 years that the National Association of Realtors has been keeping records.That was the largest monthly increase in the 10 years that the National Association of Realtors has been keeping records.
'Slow at first''Slow at first'
But Mr Bernanke warned that the road to recovery would be a long one.But Mr Bernanke warned that the road to recovery would be a long one.
After contracting sharply over the past year, economic activity appears to be levelling out, both in the United States and abroad Ben Bernanke, Federal Reserve chairman
"The economic recovery is likely to be relatively slow at first, with unemployment declining only gradually from high levels," he said."The economic recovery is likely to be relatively slow at first, with unemployment declining only gradually from high levels," he said.
The International Monetary Fund (IMF) has predicted that the US economy will expand by 0.75% next year, after previously predicting no growth. The International Monetary Fund (IMF) has predicted that the US economy will expand by 0.75% next year, after earlier predicting no growth.
The IMF has also said that the world economy was "starting to pull out of recession". The Fed chief was also upbeat on the prospects for the world economy.
"After contracting sharply over the past year, economic activity appears to be levelling out, both in the United States and abroad," he said.
The IMF has previously said that the global economy was "starting to pull out of recession".
At 1600 BST, the Dow Jones was up 123 points at 9,473. The Nasdaq and the S&P 500 also rose by more than 1%.At 1600 BST, the Dow Jones was up 123 points at 9,473. The Nasdaq and the S&P 500 also rose by more than 1%.
London's FTSE 100 climbed 1.8% to 4,841, while markets in Frankfurt and Paris were up by more than 2%.London's FTSE 100 climbed 1.8% to 4,841, while markets in Frankfurt and Paris were up by more than 2%.