This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6969872.stm
The article has changed 8 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Global shares climb on US rally | |
(about 9 hours later) | |
Wall Street shares recovered from an early dip as investors hoped for an interest rate cut after a mixed batch of economic signals. | |
The upward movement on Wall Street, prompted European markets to also rally in late trading. | |
By late-morning in New York, the Dow Jones was 0.1% up at 13,306 points while the Nasdaq surged 0.9% higher. | |
The FTSE 100 in London and the Cac in Paris both closed 1.3% ahead, while Germany's Dax added 1.2%. | |
Commerce Department figures showed that the US economy grew at an annual rate of 4% in the second quarter of the year. | |
This was an improvement on the initial estimate of 3.4% but below some analysts' expectations. | |
Analysts said that while concern that shrinking credit was hurting the US economy persisted, the chances of the Federal Reserve cutting rates had grown. | |
Comments from Fed boss Ben Bernanke on Wednesday had already lifted hopes of such a cut. | |
Mr Bernanke had said he was "prepared to act as needed" to ensure credit market troubles did not adversely affect the economy. | |
Jobless warning | |
Analysts said a report showing a growth in the number of Americans claiming unemployment benefits had also made investors cautious. | |
"The jobless claims increasing ... is not a sign of economic strength," said Charles Campbell, of Miller Tabak in New York. | |
"Given the other issues in the financial area, you need to have the consumer in the game and in order to do that they have to have jobs in order to spend." | |
Earlier on Thursday, Asian shares had risen - spurred on by Wednesday's big rises in US stocks - with the Nikkei in Tokyo closing up 0.9% at 16,153.8. |