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5pm Markets Update

European stock markets closed higher, with banking shares strong after better than expected results from Goldman Sachs.

London's FTSE closed up 67 points (1.2% at 5,862, with Barclays and HBOS both up around 3.5% to 340.5p and 327p respectively. In Paris, the CAC put on 0.6% to 4,686 and in Frankfurt the Dax rose 1% to 6,796.

In Dublin, the ISEQ index added 49 points to close at 5,620, with Elan climbing 98 cent to €18.18 in late trading after it said that a trial of a drug for Alzheimer's disease supported an earlier decision to start final Phase 3 trials.

Bank shares were also stronger, with Bank of Ireland up 17 to €6.98. A drop in oil prices also boosted airline shares, with Aer Lingus up four to €1.61 and Ryanair nine ahead at €3.19.

US markets fell back, however, as oil prices briefly crept back up above $134 a barrel. The Dow Jones fell 69 points to 12,200 and the Nasdaq dropped seven to 2,468. Earlier, Tokyo's Nikkei 225 index closed six points lower at 14,348 after strong gains yesterday.