Growing expectations of a US interest rate cut within the next two weeks yesterday delivered a much needed respite to stock markets - but not enough to stem one of the worst monthly performances for global stock markets in recent years.

Stock markets in Hong Kong, Japan, Europe and London all gained yesterday on the back of a speech by Ben Bernanke, the Federal Reserve chairman, which investors took to be a clear hint the Fed would cut rates. Markets are so sure of another cut, the speculation has moved on to whether the reduction will be a quarter- or half-point. In New York, the markets enjoyed an early surge although they were losing steam by lunchtime.