Global markets rallied today amid hopes of further economy-boosting moves by central banks and data showing US consumer confidence at a five-year high.
In New York, the Dow Jones rose by more than 200 points or 1.4 per cent in early trading after figures revealed consumer confidence last month hit its highest level since February 2008.
It was also boosted by encouraging data on the US housing market. According to the S&P/Case-Shiller national index, house prices rose 10.2 per cent in the first quarter.
Talk of more action by the European Central Bank (ECB) and the Bank of Japan was enough to send investors flocking back to equities.
In Dublin, the Iseq index of shares was up 34 points, or 0.85 per cent, at 4,113.9.
The FTSE 100 Index surged 1.8 per cent or 120.6 points higher to 6,774.9 as trading resumed its upward trajectory after last week's setback, which was triggered by hints the US Federal Reserve could scale back its vast money-printing drive.
The Dax in Frankfurt and the Cac 40 in Paris were also sharply higher as they tracked overnight gains on China's Hang Seng and the Nikkei in Japan.
Markets were buoyed by ECB members’ comments that it could still cut interest rates and will maintain an “expansive” approach for as long as necessary. Global stock markets have been lifted by record low interest rates and unprecedented money-printing by central banks, pushing investors into equities amid plunging returns on government debt and cash deposits.
Craig Erlam, market analyst at Alpari, said: "Now that the dust is beginning to settle, we could be seeing traders take advantage of the dip in the market to buy on the cheap.
“Given that the Bank of Japan’s massive bond buying program is only just getting under way, I think this will be the case.”
