Hopes that US Federal Reserve chairman Mr Alan Greenspan would make positive noises on US interest rates at last night's Senate testimony gave stock markets a boost all over the world yesterday, and the Irish market had an excellent day with the ISEQ Overall Index up 3 per cent at the close.

Any hints from the Fed chairman that rates will come down at next week's meeting of the Fed's Open Market Committee will have a galvanising effect on stock markets. In the same vein, any cautionary comments from Mr Greenspan will probably knock stock prices sharply this morning.

Financial stocks, not surprisingly, benefited most from the improved tone. AIB was 37 1/2p higher at almost 920p in a final sterling-denominated deal.

Bank of Ireland was 40p stronger on £11.30, Irish Life gained 26p to 476p while Irish Permanent was 20p higher on 780p.

The main corporate news was undoubtedly the announcement by Jurys that it is in takeover talks with Doyle Hotels.

With most of the consideration - likely to be in excess of £150 million - coming through Jurys shares, existing Jurys shareholders are facing an obvious dilution but the group will no doubt aim to maintain its strong recent growth in earnings per share.

Among industrials, gains were limited. The big rise in the industrial index was mainly due to a big jump by Elan from £41.69 1/2 to £45.30.

CRH was 10p higher on 812p, Independent gained 5p to 255p, Jurys was trading at 500p just before the Doyle announcement, up 40 1/2 p.

Marlborough regained 15p of Tuesday's heavy losses to close on 200p.

Smurfit was unchanged on 103p.