World Market Review and Indian Stock Market Analysis By Nirmal Bang

BSEU. S. stocks advanced for the seventh time in eight days after growth in retail sales and New York manufacturing topped economists' estimates and billionaire investor Warren Buffett said his company is buying equities. Sales at U. S. retailers surged in August by the most in three years, showing unexpected strength in consumer demand that extended beyond auto purchases spurred by the government's "cash? for? clunkers" program. The 2.7 percent increase exceeded economists' forecasts and followed a 0.2 percent drop in July. Retail sales were projected to rise 1.9 percent according to the median estimate of 73 economists in a Bloomberg News survey.

Federal Reserve Chairman Ben S. Bernanke said the worst U. S. recession since the 1930s has probably ended, while warning that growth may not be strong enough to quickly reduce the unemployment rate.

The dollar erased an earlier gain versus the euro and dropped to the lowest level in 2009 as global equities advanced and traders bought gold as a hedge against inflation. Higher? yielding currencies and riskier assets are in demand as risk appetite returns. The Dollar Index, which tracks the greenback against the euro, yen, pound, Canadian dollar, Swiss franc and Swedish krona, traded at 76.506 from 76.520 yesterday. It earlier hit 76.406, the lowest level since September 2008.
 
Japanese stocks rose after growth in U. S. retail sales and New York manufacturing exceeded economists' estimates and commodities prices gained. Nippon Steel Corp. climbed 2.7 percent after JPMorgan Chase & Co. rated the steelmaker "overweight" in new coverage.

Global stocks are in the middle of a "V? shaped recovery," led by emerging markets, that will last for at least another six months, billionaire investor Kenneth Fisher said. Fisher predicts Chinese stocks will lead the bull market in global equities.

China's stocks fell for the first time in four days, led by brokerages, as investors opened fewer share trading accounts for a sixth week, and on concern recent gains were excessive relative to prospects for earnings growth.

Gold traded above $1,000 an ounce for a fourth straight day and silver rose to the highest since August 2008 on concern that a global recovery may cause inflation to accelerate.