The mood was brighter on most European stock markets yesterday, after positive US economic data coaxed bargain hunters back into active trading.
In Dublin, shares closed in modestly positive territory, with dealers reporting welcome interest from value-seeking investors.
"People are looking on the world a little more favourably," said one Dublin dealer.
Low-fares airline Ryanair provided most excitement on the Irish exchange, gaining 11 cents to reach €6.69 on the back of acquisition and expansion news.
Dublin's overall 0.47 per cent rise was flattered by a decline of 0.32 per cent in London's FTSE, which was weighed down by weaker financials.
Across Europe, the DJ Euro Stoxx 50 index of leading euro-zone shares ended up 0.45 per cent to 2,248.17 points, pulling back from a sharp morning loss after the publication of a better-than-expected Chicago Purchasing Managers Index (PMI), showing some strength in the US industrial sector.
The German DAX 30 index gained 2.01 per cent to 2,747.83 points and the French CAC 40 added 0.81 per cent to 2,937.88 points.
On European currency markets, the euro opened higher against the dollar, reaching $1.082 in early trade.
The strength was short-lived, however, with news of Japanese intervention prompting significant support for the US currency, which subsequently rebounded to leave the euro at levels around $1.07.
Ulster Bank financial markets economist Mr Niall Dunne said the Japanese move had taken the market by surprise, creating "exceptionally strong demand for dollars".
Mr Dunne expects the euro to trade between $1.07 and $1.085 until an Iraqi campaign begins, but said a policy meeting at the European Central Bank next week could influence movements.
On Wall Street, the Dow Jones Industrial Average slipped 0.14 per cent upon opening and the Nasdaq fell 0.90 per cent but later drifted higher on the back of the positive manufacturing data.
"The American figures were rather well received and prompted a technical rebound among shares that have fallen," said one Paris dealer.
"The dollar is continuing to do a bit better than before and that also helped the European markets. But the Iraqi problem remains and continues to create negative sentiment," the dealer said.
The Chicago PMI data showed a rise to 56.0 points in January from 51.7 in December, the highest reading since June and well above expectations of 52.6.
US consumer spending figures were also better than expected, showing a a rise of 0.9 per cent in December against expectations of 0.8 per cent.
Consumer sentiment appears to have been less buoyant in Europe however, with new figures suggesting that morale in the euro zone fell to its lowest point since 1997 in December.
The European Commission said the news gave it no reason to change its official economic forecast. - (Additional reporting, AFP)
