The US economy is set to expand in the early part of next year thanks to fiscal stimulus from the Federal Reserve, according to Deutsche Bank, which has issued an upbeat forecast against a backdrop of gloom in financial markets.

The German bank issued a forward-looking report on the effects of Tuesday's terrorist attacks in the US. The analysis, by David Folkerts-Landau, global head of global markets research at Deutsche Bank, espouses a view that he describes as &quotdiametrically opposed to the evolving markets consensus&quot.