The ISEQ repaired much of the damage caused by last week's reaction to the outbreak of foot-and-a-mouth disease to close 194 points higher today.
International equity markets also looked stronger as investors picked up bargains after last weeks steep plunge. In Dublin the recovery was led by financial stocks. AIN gained 59 cents to euro 11.07, up 5.6 per cent. Bank of Ireland jumped 6.6 per cent to euro 9.17 and First Active gained 5 cents to euro 2.50.
Ryanair gained 35 cents to euro 9.95 and CRH added 35 cents to euro 16.85. Technology shares also looked stronger, Iona added euro 1.0 to euro 39.0 after a solid opening on Wall Street. Eircom gained 4 cents to euro 2.39.
In London the blue chip FTSE 100 index closed 174.3 points higher at 5,576.6, with all the broader FTSE indices posting solid gains.
Telecoms led the charge higher throughout the session, led by a very strong performance from Cable & Wireless after it offloaded part of its Australian Optus stake to SingTel.
Technology stocks also joined in the fun, boosted by the Nasdaq gains Friday and as Lehman Brothers highlighted the attractions of the TMTs in a radical reshuffle of its global model portfolio.
US shares posted sharp gains in early trading today on Wall Street, extending gains made at the end of the last week.
The Dow Jones industrial Average put on 111.68 to 9,616.46, while the tech-laced Nasdaq Composite tacked on 21.46 to 1,950.14. The broad S&P 500 gained 12.95, even as some leading analysts turned bearish and cut year-end estimates for the broad gauge.