London-based chief investment officers authorised massive early purchases of UK-listed shares in the wake of decisions by several hedge funds to close short positions following the terrorist attacks in the US.

The FTSE 100 index was up 130 points as trading opened following the attack, although its gains were later trimmed back to practically nothing by profit taking. The early buying of stocks followed conversations between several chief investment officers, which led to a consensus that the time had come to take advantage of opportunities.