US stocks climbed today after Bank of America and tech giant IBM reported better  than expected profits.

The rise in stocks came despite the Federal Reserve chief, Ben Bernanke, telling  the US Senate Banking Committee that the losses associated with subprime mortgages, given to those with bad credit, could reach $100 billion.

As European markets closed the Dow Jones had rebounded a  healthy 69 points (0.50%) to 13,987 and the Nasdaq rose 16 points (0.61%) to 2,715 around two hours into trading.

The second largest US bank behind Citigroup said net profit for  the second quarter rose 5% from a year ago.

Investors also welcomed IBM's latest earnings, released last night, after the technology group reported a 12% surge in  net profit to $2.26 billion.

Meanwhile, European shares as robust results from Vodafone partially eclipsed concern about how the US subprime sector might affect the broader economy.

A spate of strong European results, a bounce on Wall Street and fresh takeover activity, with Barclays saying it might sweeten its agreed offer for Dutch rival ABN AMRO.
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German software firm SAP rose by 6.1% after the company beat forecasts with its quarterly results and posted a sharp rise in licence sales.

Meanwhile Vodafone pleased investors with its first-quarter revenue and customer growth and shares in the world's second-largest mobile phone company rose by nearly 2%.

Meanwhile the Dublin market closed up 60 points at 9,168 with McInerney up ten cent at €2.25, though CRH closed down 34 cent at €35.90.

Iona closed down four cent at €3.72 after quarterly results came in slightly under forecasts, and Anglo jumped 32 cent to close at €14.82.

Japanese share prices rallied earlier today as investors chased  bargains a day after sharp falls sparked by concerns about US  earnings, dealers said.

Earlier in Asia, the Tokyo Stock Exchange's benchmark Nikkei-225  index of leading shares gained 0.56 percent to close at 18,116.57  points.