A surprise bounce in manufacturing activity in the world’s two biggest economies in August cheered investors as it ended the bleak run of US economic data over the summer.
Global stock markets surged as investors took global surveys of manufacturing output to show that the world economy was still recovering rapidly and the chances of a double-dip recession had receded.
At the London close, the FTSE All-World index had reversed most of its 3.5 per cent fall in August and was up 2.7 per cent on the day. There were gains of more than 2 per cent in European and US stock markets.
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