Better growth in the United States than expected and signs of a rapprochement between Washington and Beijing have raised hopes that the global economy has turned a corner and pushed Wall Street to fresh highs for a third day.

Last month the International Monetary Fund downgraded its forecasts and warned of a “synchronised slowdown” if weak growth in advanced economies did not improve and trade tensions were not resolved. However, traders said yesterday that the bull market was “back on track”.

The S&P 500 and the pan-European Stoxx 600 index hit new highs. President Trump added to the holiday spirit before Thanksgiving today by claiming that the US was in the “final throes” of securing a trade deal with China.

Sentiment was lifted by official data showing that the US was performing better than thought. At an annualised rate of 2.1 per cent, the second estimate of US third-quarter GDP growth was better than the 1.9 per cent first estimate and the 2 per cent second-quarter result. A rise in consumer spending and a fall in claims for unemployment benefits also pointed to brighter prospects.

Residential property investment, an increase in sales and inventory-building also accounted for America’s economic improvement. Business investment remained subdued and US growth has slowed from the 3.1 per cent in the first three months of the year.

Leading US stock indices have hit a series of records amid hopes of a trade truce and they did it again last night. The S&P 500 rose 13.11 points, or 0.4 per cent, to 3,153.63 and the Nasdaq was up 57.24 points, or 0.7 per cent, at 8,705.17. The Dow Jones industrial average gained 42.23 points, or 0.2 per cent, to reach 28,164.00. In London, the FTSE 100 was 0.4 per cent higher at 7,429.78. The Stoxx index was up 0.3 per cent.

“American traders, can head off to their turkey feeling pleased with themselves, having successfully put the great post-2009 bull market back on track. What a change to 12 months ago,” Chris Beauchamp, chief market analyst at IG, said.