Irish and European share markets rallied today as relief provided by the US Federal Reserve's discount rate cut on Friday boosted investor confidence.
The Iseq index of Irish shares rose 137.74 points or 1.7 per cent this morning to 8,244.21, largely on the back of strong performances by the leading financials.
Allied Irish, Bank of Ireland and Anglo Irish all rose in early morning trading reflecting investor relief at last Friday's statement by the US Federal Reserve indicating its decision to target growth as opposed to inflation.
Across Europe, mining groups BHP Billiton, Anglo American and Rio Tinto added almost 5 per cent each as metal prices rose in response to the Fed's move to calm nervous financial markets.
Among banks - at the heart of the recent credit crunch triggered by the US subprime mortgage crisis - BNP Paribas was up 2.5 per cent, UBS rose 2 per cent and UniCredit gained 1.8 per cent.
The FTSEurofirst 300 index of leading European shares was up 1.4 per cent at 1,494.33 points earlier this morning. Britain's FTSE 100 index rose 1.5 per cent, Germany's DAX was up 0.9 per cent, and the French CAC 40 climbed 1.4 per cent.
The panic over credit conditions that hammered Asian stock markets last week also subsided today.
But analysts warned against complacency, and the Australian central bank again injected a sizable amount of liquidity into the banking system today, seeking to temper upward pressure on some short-term money market rates.