Upbeat Bernanke boosts Dow

The Dow Jones hit a fresh year high this morning after Federal Reserve chairman Ben Bernanke said the US economy is nearing recovery.

Shortly after opening, the index had climbed more than 58 points, or 0.61%, to 9,564.15.

Bank of America Corp gained 1.55% to $17.73 after electing former Morgan Stanley executive Robert Scully to the newly-replenished board, which has suffered a plethora of resignations since April.

American Express Inc added 2.89% to $33.8, while Caterpillar is up 3.38% to $48.9.

However, Kraft Foods Inc and McDonald's Corp shed 0.94% to $28.54 and 0.23% to $56.13 respectively.

In the UK, the FTSE pulled back from the 4,900 mark but is still up more than 31 points, or 0.65%, to 4,882.53.

The index rallied in response to a report by the Institute of Chartered Accountants suggesting the recession in the UK is coming to an end.

Royal Bank of Scotland Group gained 5.92% to 51.35p on reports its share prices could double on an economic rebound, while Barclays is up 4.84% to 363p.

Elsewhere, miners BHP Billiton and Kazakhmys added 5.72% to £16.36 and 5.34% to 976p respectively.

However, DIY retail group Kingfisher tumbled 1.96% to 210p and Marks & Spencer Group fell 1.6% to 337.4p.