THE better than expected employment figures from the US gave markets a strong boost and the Irish market closed up almost 1.5 per cent with strong demand for the leaders. The strength of bond markets, together with the excellent half year results from AIB, drove the financial sector ahead strongly.

AIB closed up 9p to 346p as analysts upgraded full year forecasts to around 38p from the previous forecasts of around 36p. Bank of Ireland benefited from the general buoyancy and was 7 1/2p higher on 445p, while Woodchester was 3p higher on 180p. Irish Life - faced with a possible strike by Irish sales staff - moved 4p higher to 239p.

Among the industrials, the tide seems to have turned for CRH after its recent weakness and the share closed up 11p on 587p, while Smurfit gained 3p to 160p. Otherwise, trading was thin, but Greencore pushed ahead 3p to 308p, while Kerry was unchanged on 595p.

The strength of international bond figures in the wake of a series of good US economic figures this week trickled down to the Dublin market. Even the prospect of an increase in domestic interest rates in the wake of the strong credit growth figures did not dissuade investors from pushing gilt prices ahead.

By the close in Dublin, the five year benchmark stock was on a yield of 6.77 per cent, ten year gilts were yielding 7.39 per cent and the 20 year long gilt closing on a yield of 7.52 per cent.