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Markets end three-year losing streak

The US stock markets on Wednesday ended three years of falls, though optimism about the next 12 months is being clouded by the US budget deficit and worries about the dollar.

The Dow Jones average gained 25% over the year - its first yearly gain since 1999 - while the Nasdaq shot up 50%.

The Dow closed on Wednesday at a year high of 10,454, up 29 points, though the Nasdaq dropped seven to 2,003, compared with Tuesday's 2003 high of 2,010.

Earlier on Wednesday, European markets had also broken their three-year losing streak, with London's FTSE ending the year at 4,477, a gain of 13.6% for the year. Dublin's ISEQ index recorded a 23% gain in 2003 to close at 4,921.

Tokyo's Nikkei ended the year 24.4% ahead.