The US economy has shownsigns of a tentative recovery, with positive news from the homebuilding sector and signs that the chances of inflation in the short term have been averted.

Investors were particularly buoyed by news from the home construction sector, with housing starts data from the Commerce Department – essentially the breaking of ground on new homes – showing that construction of single-family homes are now at the highest level since last October after a fifth straight monthly increase.

Daily Telegraph