A dramatic 0.75 point cut in US interest rates announced by the Federal Reserve appears to have calmed recent panic on the world's stock markets. On Wall Street, the Dow Jones initially lost around 4%, but was later down 182 points at 11,918, while the Nasdaq was off 55 at 2,285.
European markets appeared to be reassured by the Fed move, with the FTSE closing up 162 points - almost 3% - at 5,740. Paris gained 2% to 4,843 but Frankfurt ended down 0.3% at 6,769.
In Dublin, the ISEQ gained nearly 4%, finishing 236 points higher at 6,497. Banks were strong, with Anglo Irish up 6% at €9.18 in late trading and Bank of Ireland 5% higher at €9.42. Food group IAWS jumped almost 10% to €14.05, but Smurfit Kappa fell 30 cent to €8.14.
Earlier, Asian stock markets took a battering, with some markets shedding up to 8% in a nervous sell-off sparked by fears that a US recession will hurt economies around the world. Japan's Nikkei Index fell below the 13,000-point level for the first time in more than two years, down 5.6% or 753 points to 12,573.
