Global shares jump to six-month highs

The FTSE 100 recording its ninth session of gains in a row yesterday, rising another 1.5 per cent to 4559.9. It is now only two positive sessions from matching its record of 11 consecutive up days, set in 2004 and 1997.

Analysts largely attributed the gains to further strength in the US, which saw the Dow Jones Industrials Index break 9,000 for the first time since the start of the year, closing at 9062.29 after US home sales beat analysts' estimates.

Figures from the National Association of Realtors showed that previously-owned home sales in June were up 3.6 per cent to an annual 4.89m units, the third monthly gain in a row. Corporate results from the likes of Ford, At&T and 3M also beat forecasts.

The increasing confidence in the US spread across world markets, with Asian shares gaining for a ninth day and European bourses also moving ahead. Analyst were mixed over the future direction of shareprices, with some pointing to low valuations and improving profits as reasons to be cheerful.

Others, however, have expressed concern that markets now discount all the good news which might unfold over coming months. In the short term GDP figures are due out today in the UK and should determine the immediate direction of the FTSE.

WHAT THEY ARE SAYING:

Ciaran O'Kelly at Nomura Securities in New York on BBC.co.uk: "I don't think the market is signalling that we are fully healed at all, but it is telling us that there is a strong likelihood that a recovery is under way."

Pearlyn Wong, an analyst at Bank Julius Baer & Co. in Singapore on Bloomberg.com: "The rally has gone on longer than expected. We’ve probably seen the worst in terms of earnings but we’re still quite cautious. Valuations have priced in a recovery." ·