For the second day in a row, the Irish Stock Exchange found itself among the best performing in Europe as it surged by 5.12 per cent, adding on 227.45 points to 4,673.79.
Any stocks that were aggressively sold off in the past few days and weeks rallied the most today, with the financials leading the charge.
Earnings at JPMorgan Chase today and Wells Fargo yesterday in the United States beat analysts' estimates, lifting bank stocks worldwide and Irish banking stocks were among those in the vanguard.
AIB saw its price soar by nearly 13 per cent, its biggest jump in nearly 20 years, as it closed the day 92 cents stronger at €8.20. Bank of Ireland also saw its share price jump massively as it advanced 10 per cent or 50 cents to €5.39. Anglo Irish Bank was up 8.7 per cent to €4.75, while Irish Life & Permanent was nearly 9 per cent to €4.675.
Better than expected housing starts in the US in June had a positive impact on CRH which relies on the America's for 49 percent of its sales. Its stock jumped a massive 9 per cent and was €1.35 stronger at €16 by the close of business.
Most other construction stocks rose substantially. Kingspan was up 7 per cent at €5.994, while Grafton tacked on 26 cents as it soared by nearly 9.5 per cent to €3. McInerney, however, was one of the bigger losers on the day as its share price dropped nearly 6 per cent to 32 cents.
Lower oil prices have also been a significant catalyst in boosting international markets, with airlines being among the chief beneficiaries. Despite announcing that it was temporarily closing seven airports in Europe and cutting back on the number of flights from Stansted Airport this winter as part of a cost-cutting programme, Ryanair still managed to pick up 2 cents to €2.95. Aer Lingus was up more than 2 per cent at €1.27.
Other stocks putting in an impressive performance included Independent News & Media was up more than 10 per cent to €1.29 and Paddy Power which was up €1 to €17.60.
European stocks surged the most in three months after Nokia and JPMorgan Chase reported earnings that beat analysts' estimates, easing concern a slowing economy and credit losses will stifle profit growth.
National benchmark indices increased in all 18 western European markets. The UK's FTSE 100 jumped 2.6 per cent. France's CAC 40 climbed 2.8 per cent, and Germany's DAX rose 1.9 per cent.