European shares rose in early trade following a late surge in US stocks last night after the Federal Reserve slashed interest rates to a range of zero to 0.25 per cent.
At 8.05am, the FTSEurofirst 300 index of top European shares was up 0.8 per cent at 841.66 points.
But it has fallen more than 44 per cent in 2008, hurt a by a credit crisis that has contributed to several major economies going into recession.
In Dublin the Iseq index of Irish shares was up 2.6 per cent at 2,537 points at 8.29am with Anglo Irish Bank gaining 6 per cent to 32 cent. Bank of Ireland, AIB and Irish Life and Permanent were ahead between 6 and 2 per cent.
The Ftse was ahead a more modest 0.5 per cent. Across Europe Germany's DAX and France's CAC-40 were up between 0.5 and 0.9 per cent.
Oil was up more than 2 per cent at $44.74 a barrel ahead of expected oil production cuts by OPEC.
The Federal Reserve slashed borrowing costs last night to a record low, between zero and 0.25 per cent, and pledged more unconventional steps to fight the deepest recession in generations.
"The Fed can take rates no lower. And lower rates by themselves won't do it. We've seen that in Japan, although it's better to have low rates than high rates, for sure.
The markets are up on the Fed's statements on easing and on confidence that (President Barack) Obama's stimulus measures will work," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin.
"The ECB is now more likely to ease further," he added.
Agencies