THERE is no stopping the equity markets. The US market hit yet further record highs this week, buoyed by confidence that US interest rates will, after all, not have to rise again in the near future.

And despite a British budget seen as unfavourable to business and the threat of further British rates rises the London market continued to steam ahead, at least until yesterday, when it started to lose ground.

Against this background share prices in Dublin have made further ground.

Overall the London market was the biggest winner of the week, gaining 3.7 per cent. New York rose 2.7 per cent, while the Dublin market ended up 2.4 per cent,

However, next week may see a more cautious start, with London analysts now starting to focus on the prospect of an interest rate increase.

The majority opinion in London is that the British budget did not do enough to restrain consumer spending and that a rise in British rates is now inevitable.

In Dublin, the financial stocks continue to power ahead. AIB was the star performer of the week, gaining 32p to 543p, while Bank of Ireland ended 27p higher at 757p.

The two bank shares stormed ahead on Thursday in heavy volume and gained further yesterday, with AIB nosing ahead of Bank of Ireland again in terms of overall market capitalisation, after this week's exceptional run.

Bid speculation in the British sector has been one factor supporting the bank stocks in recent dealing sessions.

It remains to be seen how the bank shares will fare in the weeks ahead if interest rate nervousness hits the Irish bond and interest rate markets.

For the moment the pound has risen in tandem with sterling, as revaluation speculation continues to support the Irish currency.

But if the revaluation idea loses its attraction among foreign investors, the pound could fall rapidly, rekindling inflationary fears and hitting bond and interest rate markets.

This in turn could knock on to the financial stocks. Yesterday there were signs, for the first time recently, of the pound falling back against sterling, although it was supported around the 90p level by corporate buying.

Still, some brokers continue to believe that the bank shares can climb yet further, despite the fact that the financial shares have been by far the biggest gainers of recent months.

Meanwhile, elsewhere on the equity markets, gains among the industrial stocks were much more modest, with CRH ending the week up 10p at 700p and Smurfit up just 1p at 193p.

Next week, attention will focus increasingly on the dairy sector, with the first of two special meetings of farmer members of Waterford and Avonmorc co-operative societies to vote on the proposed merger plan.

Waterford Foods shares have gained gradually during the week, ending 10p up at 145p as some investors are prepared to bet that the necessary 75 per cent majority will be gained.

Reports from the area suggest that while a majority in Waterford favour the merger terms, a substantial minority remain in opposition, meaning the necessary level of acceptance can by no means be guaranteed.