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article imageShares go up after Bernanke says the US is close to recovery

By Jane Fazackarley     Aug 21, 2009 in Business
Stock Markets around the world are on the up after positive comments from Ben Bernanke. The chief of the US central bank said the US economy was approaching the beginning of a recovery.
Speaking at a conference held in Wyoming Ben Bernanke said: "The prospects for a return to growth in the near term appear good,"
It was good news for Wall Street which saw the Dow Jones increase by over 1%. European markets were also boosted by the announcement.
But there was more negative news on the unemployment front. It is widely expected to go past 10% in the States and the decrease in unemployment figures will be a slow one.
Jean-Claude Triche, President of the European Central Bank was less positive about a recovery. Speaking at the same conference he said:
"I am a little bit uneasy when I see that, because we have some green shoots here and there, we are already saying, 'well, after all, we are close to back to normal',
In July the United States saw an increase of house sales of 7%. This is the biggest monthly increase for a decade.
Ben Bernanke also warned that the recovery would be a difficult one saying:
"The economic recovery is likely to be relatively slow at first, with unemployment declining only gradually from high levels,"
The International Monetary Fund estimate that the United States economy will grow by 0.75% in 2010. They had previously estimated there would be no growth in the year to come.
Jacob Oubina from said to the BBC:
"Bernanke was a little bit more bullish than most people were expecting,"
"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."
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