European shares rallied further today after stronger-than-expected data on the US economy which suggested the fallout from the sub-prime housing crisis and subsequent credit problems might not be as bad as feared.
Banks were the day's top performing sector as investors saw a greater chance for the Bank of England to cut British interest rates tomorrow. London's FTSE 100 index jumped 2.83% to close at 6,494, while In Paris, the CAC 40 added 2% to end at 5,659 and in Frankfurt the DAX rose 1.74% to 7,945.
Dublin's ISEQ index also ended the day higher, adding 88 points to close at 6,971 with little market reaction to today's Budget 2008 from Finance Minister Brian Cowen. Shares in banks were stronger with AIB up 20 cent to €15.10 ahead of its trading statement tomorrow, and Bank of Ireland adding 25 to €10.45. Irish Life and Permanent closed 26 cent higher at €13.05 while Anglo Irish Bank was up 10 to €10.70.
US stocks soared this evening after strong jobs data raised hopes that the global credit crisis may not be hurting economic growth as much as has been feared. The Dow Jones jumped 195 points to stand at 13,444 while the Nasdaq was up 51 to 2,671. Earlier this morning, Tokyo's key Nikkei 225 index rebounded 0.83% to close at 15,609 as a softer yen lifted exporters.
