World stocks edged higher on Tuesday and the U.S. dollar gained after Federal Reserve Chairman Ben Bernanke said the central bank stands ready to take further steps to stimulate the economy but stopped short of signaling any near-term action, according to Reuters. Financial markets had looked forward to Bernanke's testimony to Congress for any signs the Fed was moving closer to a third round of bond buying to support the economy. But the Fed chief hewed closely to the message of watchful waiting that the central bank's policy panel delivered in June, and yielded few new clues. U.S. stocks initially fell after Bernanke disappointed investors who had hoped for a specific time frame for more stimulus. But they recovered in midday trading, led by shares of materials producers. "For stimulus junkies, as we call them, they wanted more clear signs of (asset purchases). They didn't get that and the market dropped," said Joe Saluzzi, partner at Themis Trading in Chatham, New Jersey, speaking of the Fed's program that has previously lifted equity and commodity prices. Bernanke told the Senate Banking Committee the U.S. economic recovery was being held back by anxiety over Europe's debt crisis and the path of U.S. fiscal policy. The Dow Jones industrial average rose 56.95 points, or 0.45 percent, at 12,784.16. The Standard & Poor's 500 Index was up 6.12 points, or 0.45 percent, at 1,359.76. The Nasdaq Composite Index was up 9.15 points, or 0.32 percent, at 2,906.09. A measure of world stock markets was up 0.3 percent to 310.42 after touching a one-week high. European shares dropped 0.2 percent to close at 1,041.53.
