European shares rose in early trade toy, after the Federal Reserve unveiled its first large-scale purchase of Treasury bonds in four decades to try to revive the US economy.
At 10.05am the Iseq index of Irish shares was up 0.7 per cent at 2,124 and the FTSEurofirst 300 index of leading European shares was up 0.9 per cent at 716. points.
In London the FTSE 100 was ahead 0.8 per cent while in Paris the CAC was up 0.8 per cent at 2,784.
In Dublin Bank of Ireland shares were ahead over 15 per cent at 41 cent with almost 3 million shares traded while AIB was up almost 10 per cent at 57 cent. Irish Life and Permanent shares rose over 6 per cent to 80 cent.
“The Fed's move is a major positive for financials," said Bernard McAlinden, strategist at NCB Stockbrokers in Dublin. “But with the dollar weaker, and the euro stronger, you've got a negative impact for the likes of autos.”
Banks were among the major gainers. BNP Paribas, Banco Santander, Barclays, Credit Suisse, UBS and UniCredit rose between 4 and 10.5 per cent.
UBS Was also boosted by announcing it would spend up to €1 billion buying back bonds. But HSBC fell 2.3 per cent, amid its £12.5 billion rights issue. HSBC rights shares will begin trading in London on Friday.
British insurer Prudential rose as much as 12 per cent after beating forecasts by reporting a 17 per cent rise in annual profit, boosted by growth in its Asia operations.
The company also announced the departure of its chief executive Mark Tucker. Allianz, Aviva, AXA, Generali, Legal & General and Zurich Financial were up between 3.2 and 8 per cent.
French luxury goods group Hermes rose 5.1 per cent after it said early-year trading was in line with its target of stable sales for the year as it posted 2008 profits up on a year earlier and ahead of forecasts.
Agencies