Shares on Wall Street finished with their biggest rise in four years ending another rocky day of trading on global markets. The mood was lifted by comments from US Federal Reserve official William Dudley that a rate rise in September seemed less compelling.
The U.S. Federal Reserve will start scaling back its monthly bond-buying program as early as next month, but the reduction will be gradual. The Federal Reserve has been buying 85 billion dollars a month in government bonds in an effort to keep interest rates low and boost economic growth.
US and European shares have both fallen as concerns continue about the high level of Euro zone debt, as well as the risk of a return to recession on both sides of the Atlantic.