MARKET REPORT:BETTER THAN expected earnings at JPMorgan Chase and Wells Fargo in the United States over the past two days lifted bank stocks worldwide and Irish banking stocks were among those in the vanguard.

Banks put in a remarkable performance, regaining many of the losses made earlier in the week.

With the Iseq index of Irish shares heavily weighted towards financial stocks, the Dublin market surged more than 5 per cent, adding on 227.45 points to 4,673.79, making it one of the best performing European markets for the second day running.

AIB saw its price soar by nearly 13 per cent, its biggest jump in nearly 20 years, as it closed the day 92 cent stronger at €8.20. Bank of Ireland also saw its share price jump massively as it advanced 10 per cent or 50 cent 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. However, brokers said that a sustained rally in financial shares would depend on results from a number of US banks in the next few days.

Further good news from the US in the form of better than expected housing starts in June had a positive impact on CRH which derives nearly half of its sales from the American market. Its stock jumped a massive 9 per cent and was €1.35 stronger at €16 by the close of business. A number of other construction stocks rose substantially, with Kingspan was up 7 per cent at €5.994. Grafton tacked on 26 cent as it soared by nearly 9.5 per cent to €3.

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 in seven airports in Europe and cutting back on flights from Stansted Airport this winter, Ryanair still managed to pick up 2 cent to €2.95.

Settlement date: July 22nd