Dow regains pre-terror levels

The main share index in the US has climbed to its highest level since the 11 September terrorist attacks.

The Dow Jones Industrial Average only rose 20 points on Friday to finish at 9,608, but this was enough to take it above its 10 September close of 9605.

When trading resumed after the terrorist attacks share prices dropped sharply, with the Dow falling as far as 8235 on 21 September.

But since then the index has gradually regained ground, helped by some aggressive rate cuts by the world's central banks as they try to stimulate the flagging global economy.

The past week has seen half-point cuts by the US Federal Reserve, the Bank of England, and the European Central Bank ( ECB).

Corporate recovery needed

All the major US stock indexes have enjoyed useful gains this week. The Dow has risen 3.05% since Monday, while the tech-heavy Nasdaq has gained 4.7% and the broader Standard & Poor's 500 index finished 3.04% higher.

But analysts say gains are likely to remain limited until more companies start showing signs of recovery.

"We're going to see sharp rallies, but I don't think they'll be sustainable until we get hard data from corporations that shows things are improving - the best we've seen so far is that things are stabilising," said Robert Cohen a trader at Credit Suisse First Boston.

In Europe shares slid back on Friday after enjoying sharp rises the previous day in the wake of the rate cuts from the Bank of England and ECB.

In London the FTSE 100 closed down 0.64%, in Paris the CAC-40 slipped 1.28% and in Frankfurt the Dax fell 1.67%.