European stocks resumed their rally in early trading today as dealers looked for a repetition of the 1991 Gulf war when share prices rebounded soon after the conflict began.
The DJ Euro Stoxx 50 index of leading euro zone shares gained 1.1 per cent, to 2,182.5 points about three hours into the session.
On the Irish Stock Exchange, the ISEQ index of shares was trading 47.32 points up at 3,943.87.
London's FTSE 100 index climbed 1 per cent to 3,758.6 points, the German DAX 30 surged 3.8 per cent to 2,581.3 points and the French CAC 40 index added 1 per cent to 2,860.6 points.
The euro fell to $1.0572. Investors were digesting news that US President George W. Bush had given Iraqi leader Saddam Hussein 48 hours to leave the country or face attack, clearing some of the confusion that has been clouding markets for months.
A sharp fall in oil prices helped to brighten the mood among investors nervous about the impact on the global economy and company earnings of the recent surge in crude prices.
Investors were hoping for fresh gains on Wall Street when trading resumed, after the Dow Jones industrials surged 3.6 per cent yesterday, and the Nasdaq composite rose 3.9 per cent.
Asian stock markets also streaker higher today, when share prices rose 1.05 in Tokyo and 2.7 per cent in Hong Kong.
AFP