INTERNATIONAL equity markets showed little sign of fatigue this week, with new highs on Wall Street, London and Dublin, showing the bull run is continuing into 1997.
Wall Street proved to be the driving force behind the latest surge, as the market shook off inflation jitters to rally to record levels. Having overcome several attempts to upset its momentum, Wall Street proved it still has some way to go to reach its peak.
European markets, in turn, were on its tail, rising amid growing investor confidence.
The FT-SE broke new ground breaching the 4,200 level on the back of the surge on Wall Street and encouraging economic data on the British economy.
News that underlying British inflation had slowed to 3.1 per cent last month from 3.3 percent and the Chancellor of the Exchequer, Mr Kenneth Clarke's decision to leave base rates at 6.0 per cent, also underpinned the market.
Even though the market will continue to be overshadowed by political uncertainty in the run up to the British general election, most analysts believe the FT-SE will continue to mirror the performance on Wall Street.
Not to be outdone by their European partners, the French and German stock markets rallied strongly, managing to notch up new highs during the week.
The Dublin market also went firmly ahead leaving most stocks looking better.
Investors returned in full force this week, with many stocks being tested for the first time this year.
The battle between the two main banks for prime position continued, with AIB wresting its top spot back from Bank of Ireland by the end of the week. This saga seems set to continue for some time, with most analysts predicting Bank of Ireland will be able to make a fresh attempt for the number one spot.
Most other financials also went strongly ahead this week.
Woodchester was again the focus of attention amid growing speculation about its future. The stock gained ground early in the week on the belief that Credit Lyonnais (CL) is close to selling its controlling stake in the company.
Woodchester reached its highest level since 1988 at 232p before giving up some ground towards the end of the week.
The stock will now remain volatile in the absence of a firm indication of what the troubled French bank's next move will be.
Irish Permanent, one of the groups considered likely to bid for the CL stake if it came on the market, also enjoyed another good run, reaching new highs of 505p by mid week.
In terms of results, Irish Continental Group (ICG), brought disappointing year-end figures to the market, as a result of problems at its Bell Lines subsidiary.
ICG reported a drop in pre-tax profits from £11 million to £19.5 million due to a write-off of its investment in the company together with its share of losses in Bell.
Bell Lines, in which ICG has a 25 per cent stake, has been adversely affected by intense competition from the Channel Tunnel. It is now to be restructured.
All eyes in the Dublin market will now be on Wednesday's Budget. Wall Street will also continue to be a determining factor for the Irish and other European stock markets.
