Dublin's Iseq has recovered early losses that saw it dip under the key 8,000 mark this morning and is now trading up 3 per cent. At 3pm the index was at 8295.
The recovery follows the news that the Federal Reserve was cutting the interest rate at which it lends money to banks, an announcement that saw the Dow Jones up 2.41 per cent at 13,155.81, shortly after opening.
European markets have also risen on the news with the FTSE 100 up 3.62 per cent, Frankfurt's Dax was up 2.73 per cent and the Cac 40 in Paris' was up 3.24 per cent at 2.35pm.
After a difficult morning the main financial stocks have also recovered. After falling this morning, Bank of Ireland are now marginally ahead, up 16 cent at €13.1.
Irish Life and Permanent shares have also recovered early loses and at 2.30pm was trading at €17.67, a gain of 35 cent.
AIB shares have per formed strongly, rising by over one euro or over 5 per cent to €19.02 while Anglo Irish shares are ahead over 6 per cent at €14.4, a gain of 95 cent.
Elsewhere construction giant CRH has pulled back early loses and is now trading at €30.7, a gain of 67 cent.
Both airline stocks are marginally ahead with Aer Lingus shares up marginally at €2.42 and Ryanair trading at €5.1. It was reported today that Ryanair has purchased another 3 per cent in Aer Lingus, bringing its stake to 28 per cent.
Insurance company FBD has followed an 8 per cent fall yesterday and early loses today with a gain of 100 cent to €25.5 in afternoon trade.