Signs that budget talks between US Democrats and Republicans are finally progressing are raising optimism an agreement to avoid the fiscal cliff will be reached by year-end.

US Federal Reserve policymakers make good on a promise to help revive the world's largest economy.

Some believe a clear signal from Federal Reserve chairman Ben Bernanke on Thursday will draw out many investors waiting on the sidelines.

There is now an expectation that the Fed, like the ECB agreed last week, will opt for an open-ended approach to buying more assets, giving it greater flexibility to respond to economic data as it is released.

Global shares pause as investors await ECB confirmation on its bond-buying programme in the hope the bank will act to help check the EU credit crisis.

Stocks fall on both sides of the Atlantic after data shows the Japanese economy is expanding at a slower rate than expected, highlighting the global struggle.