HOPES of a delay in US plans to taper its economyboosting drive helped fuel the fightback on world markets yesterday as stocks rose sharply on both sides of the Atlantic.

London’s FTSE 100 Index extended its bounce back to a third session in a row, up 77.9 points at 6243.4, in a further recovery from the earlier plunge seen after fears of a looming credit crunch in China.

As well as more reassuring comments from Chinese policymakers, the rise reflected yesterday’s surprise revision in first-quarter growth in the US, which it is thought could delay Federal Reserve’s plans to wind down quantitative easing.

A series of upbeat economic reports on US unemployment and consumer spending yesterday had the opposite effect, helping support gains on Wall Street as the Dow Jones Industrial Average rose 0.8 per cent in early trading.

In corporate news, shares in Debenhams enjoyed a much-needed bounce amid relief over an update showing flat likefor- like sales in the past 16 weeks.

The department store chain described the performance as robust and said it was comfortable with current City profit forecasts.

Shares, which have fallen sharply since the start of the year due to a profits warning caused by poor weather, were five per cent or 4.3p higher at 95.1p.

Elsewhere, Greene King was three per cent higher after the brewer and pubs chain reported pre-tax profits of £162m, a rise of 6.6 per cent on a year earlier.

It said conditions at the start of the new financial year were challenging but that it was confident of maintaining momentum, helped by consumer demand for “everyday treats”

in pubs such as Hungry Horse.

Shares rose 21p to 767p after the company also increased its dividend by seven per cent.