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| Version 3 | Version 4 |
|---|---|
| Shares rise on renewed optimism | Shares rise on renewed optimism |
| (about 1 hour later) | |
| European and Asian shares have risen strongly while Wall Street built on on Tuesday's gains, after the latest signs of US economic recovery. | |
| The UK's FTSE 100 index was up 1.5% in mid-afternoon trade, while Japan's Nikkei ended up 0.5%. | |
| The US Dow Jones added 0.3% after Tuesday's 0.6% gains took it to its highest level since October 2008. | |
| Investor sentiment was boosted by jumps in US retail sales in August and upbeat comments from the Federal Reserve. | Investor sentiment was boosted by jumps in US retail sales in August and upbeat comments from the Federal Reserve. |
| The Fed chairman Ben Bernanke, heartened investors, saying the US recession was now "very likely over". | The Fed chairman Ben Bernanke, heartened investors, saying the US recession was now "very likely over". |
| US monthly trade deficit figures - which narrowed in May, but then widened in June and July - have been seen by analysts as a signal that the US recession was nearing its end. | |
| I think investors should sort of catch themselves now and not get over-confident Gregg Fisher, Gerstein Fisher | I think investors should sort of catch themselves now and not get over-confident Gregg Fisher, Gerstein Fisher |
| The FTSE's rise was mirrored across Europe, where Germany's Dax had added 1.2% and France's Cac was up 1.5%. | |
| The main Australian share index had earlier closed up 2.2%, while Hong Kong's Hang Seng added 1.8% and India's Sensex advanced 0.8%. | The main Australian share index had earlier closed up 2.2%, while Hong Kong's Hang Seng added 1.8% and India's Sensex advanced 0.8%. |
| Cautious note | Cautious note |
| Official data showing that US retail sales rose 2.7% in August was warmly welcomed by the markets, because consumer spending is central to the US economy, accounting for more than two-thirds of US economic activity. | Official data showing that US retail sales rose 2.7% in August was warmly welcomed by the markets, because consumer spending is central to the US economy, accounting for more than two-thirds of US economic activity. |
| While the big rise was helped by the US "cash for clunkers" car scrappage scheme, which has now ended, retail sales excluding cars also increased by 1.1%, beating market expectations of a 0.4% gain. | While the big rise was helped by the US "cash for clunkers" car scrappage scheme, which has now ended, retail sales excluding cars also increased by 1.1%, beating market expectations of a 0.4% gain. |
| However, despite the share rises, Mr Benanke warned that the US economy still faced some hurdles before it could exit recession. | However, despite the share rises, Mr Benanke warned that the US economy still faced some hurdles before it could exit recession. |
| "It's still going to feel like a very weak economy for some time," he said. | "It's still going to feel like a very weak economy for some time," he said. |
| This cautious note was mirrored by a number of analysts. | This cautious note was mirrored by a number of analysts. |
| "Investors are always following the herd," said Gregg Fisher, chief investment officer at financial advisory firm Gerstein Fisher. | "Investors are always following the herd," said Gregg Fisher, chief investment officer at financial advisory firm Gerstein Fisher. |
| "I think investors should sort of catch themselves now and not get over-confident." | "I think investors should sort of catch themselves now and not get over-confident." |