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| Version 1 | Version 2 |
|---|---|
| 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". |
| 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 | |
| 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. |
| THE US ECONOMY Things are not getting worse, we are in that period before the economy grows again. | |
| Everybody is more optimistic, but still there are words of warning that financial markets need to stabilise. | |
| It is still hard for consumers and businesses to obtain loans. | |
| And the US consumer is still reluctant to spend money - if they are not spending then you are not going to see a rapid growth in economic activity. They are still keeping their purse strings tight. | |
| So, no-one here is getting carried away with progress so far. | |
| Greg Wood, BBC North America business correspondent | |
| "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 earlier 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 Fed chief was also upbeat on the prospects for the world economy. | 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. | "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". | The IMF has previously said that the global economy was "starting to pull out of recession". |
| 'Bullish' | |
| 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%. |
| "Bernanke was a little bit more bullish than most people were expecting," said Jacob Oubina, currency strategist at Forex.com. | |
| "He's saying that the global economy is starting to emerge from the recession and that the fears of a financial collapse have receded substantially. | |
| "I think the market is just taking those headlines as extreme positives for the outlook." |