Investors were in sombre mood on Wednesday, and trading was light as many stayed away from the markets on the first anniversary of the terror attacks against the US.

Stock market indexes in New York ended slightly lower as an earlier rally ran out of steam, but the main indexes in London, Paris and Frankfurt all closed higher.

Wednesday markets

Dow Jones: 8,581.17, down 21.44 points Nasdaq: 1,315.45, down 4.64 FTSE 100: 4,210.7, up 35.2 Cac 40: 3,397, up 97 Dax: 3,584.69, up 90

Trading in New York began later than usual to allow financial sector workers a chance to remember colleagues lost in the attacks and take part in memorial services.

The Nasdaq began trade an hour-and-a-half later than usual, while the New York Stock Exchange started at noon local time.

Emotional day

Analysts said that few people were concerned about economic or corporate news.

Today is a day of reflection

Alan Ackerman Fahnestock & Co.

"I don't think anyone is focused on stocks and that's part of the problem today," said Stephen Massocca, head of trading at CIBC World Markets.

"Tomorrow it will be back to business, but today people are reliving some terrible memories."

"Today is a day of reflection," said Alan Ackerman, market strategist at Fahnestock & Co.

"People don't feel concerned about the market but about the turmoil and tragedy we experienced a year ago."

Europe strengthens

In London the main FTSE share index edged higher thanks to gains amongst telecom and pharmaceuticals stocks.

Traders the world over have been observing periods of silence

There were also positive signs for the High Street with electronics retailer Dixons reporting better-than-expected sales figures.

The FTSE 100 index of leading UK shares closed up 35.2 points, or 0.8%, at 4,210.7.

After a quiet morning, the main share indexes in France and Germany climbed in afternoon trade, with the Cac 40 in Paris ending nearly 3% higher, and the Dax in Frankfurt up 2.6%.

Back to 'double-dip'

However, dealers said any increased optimism among investors after the 11 September anniversary was likely to be short-lived.

"If we do get through today that will have a momentarily positive effect, but that will fade very quickly," said Edward Menashy, an economist at Charles Stanley.

"Then we're back to the central question of whether we're heading for a double-dip recession or whether we've reached the end of the slowdown phase."