World stock markets surge

Stock markets in London, New York and Tokyo hit year highs yesterday in a sign that investors' confidence could be returning.

The FTSE gained 24.8 points to close at 4272.1, its best figure since August last year. Rosy news from big retailers such as Wal-Mart pushed New York's Dow Jones index up 90.76 points to 9412.45 last night, a 14-month high. Analysts said signs of improvement in the US economy, corporate profits and retail sales were luring investors back into shares. Wal-Mart said August sales in its US stores may beat its forecast and show the biggest gain in 14 months.

US traders were also breathing a sigh of relief that the economy appeared to have emerged from the dark ness of last week's electricity blackout largely unscathed.

In Tokyo the Nikkei was up 1.7% to 10,033, the first time in a year it has closed above 10,000. It was helped by data showing GDP was rising three times better than expected.

However, in all cases trading was thin and the moves in share prices came on the back of low volumes.