Page last updated at 20:20 GMT, Wednesday, 16 September 2009 21:20 UK

Shares rise on renewed optimism

Traders on the New York Stock Exchange earlier this week
The Dow Jones has reached its highest level this year

Shares worldwide have risen strongly after the latest signs of an economic recovery in the US.

Shares on Wall Street continued upwards thanks to better-than-expected industrial production data.

The Dow Jones Industrial Average closed up 107.5 points, or 1.1%, at 9,791, which was an 11-month high. It has now risen for eight of the past nine days.

The UK's FTSE 100 index also achieved its highest close for almost a year, rising 1.6% to close at 5124.1.

US monthly trade deficit figures - which narrowed in May but then widened in June and July - have also been seen by analysts as a signal that the US recession is nearing its end.

FTSE 100 index

But there have been warnings that investors should not get too carried away while money is still being pumped into stimulus packages, which flatter the economy.

"The valuations today are such that I feel that the markets are very much fully valued," said Michala Marcussen at Societe Generale Asset Management.

"The real question is what happens when we pull away the stimulus, which we will at some point."

The FTSE's rise was mirrored across the rest of Europe. In Paris the Cac 40 was 1.6% higher and Frankfurt's Dax closed up 1.3%.

The main Australian share index had earlier closed up 2.2%, while Hong Kong's Hang Seng added 1.8% and India's Sensex advanced 0.8%.

Dow Jones index

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FTSE 100
22.84 0.42%
18.55 0.32%
Cac 40
14.37 0.38%
Dow Jones
78.53 0.76%
35.31 1.58%
Data delayed by at least 15 minutes

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