World stock markets hovered close to 2009 highs yesterday as growing optimism over prospects for a global economic recovery next year helped underpin a traditional pre-Christmas rally in Europe and the US. The FTSE World index was up 0.5 per cent at 342.07, just short of this year's peak of 344.67, while by midday in New York the S&P 500 was up 0.1 per cent at 1,119.09, although trading was thin.
The pan-European FTSE Eurofirst 300 index closed up 0.2 per cent at a 15-month closing peak of 1,037.34, while London's FTSE 100 index ended 0.8 per cent up at 5,372.38, extending its winter rally to within 10 points of its 2009 high.
The Tokyo market was closed yesterday, although the Nikkei 225 Average ended Tuesday's session at a three-month peak. China's benchmark Shanghai Composite bounced back from seven-week lows to close 0.8 per cent higher at 3,074.