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Markets respond well to US interest cut

Stocks - Responding to US bank interest rate cut
Stocks - Responding to US bank interest rate cut

Stock markets have made a strong recovery following a surprise interest rate cut by the US Federal Reserve, the country's central bank.

European stock markets closed sharply higher, with London's FTSE up 3.5% at the finish.

In Dublin, the ISEQ was finished up 49 points at 8,106.

The surprise move by the US bank was aimed at calming nervous stock markets.

In a statement, it said the increased uncertainty from recent disruption to financial markets could affect economic growth.

The Fed lowered its primary discount rate, which governs direct Fed loans to banks, by a half-percentage point to 5.75%.