US share prices surged yesterday as investors switched out of low-yielding bonds and took heart from a rush of company chiefs swearing their accounts are true.
About 700 of the 947 companies covered by the SEC had to comply by the close of business yesterday. Some companies will file later.
In New York, the Dow Jones index closed up just over 3 per cent higher at 8743.31 while the tech-led Nasdaq index roared ahead, gaining 5.1 per cent on the day to close at 1,334.33.
But the rally came too late for most European markets which took their cue from the previous day's performance on Wall Street.
On Tuesday, US shares fell by more than 2 per cent after the US Federal Reserve left interest rates unchanged at 40-year lows but signalled its concern about a weakening US economy.
The fall, allied to disappointing results from a number of leading European corporates, left most markets sharply weaker.
But the Irish market bucked the general trend, gaining 0.6 per cent on foot of a strong performance from the two leading banks and Kerry Group.
Despite a 2.4 per cent fall in European banking shares as banking giant, Credit Suisse, issued disappointing results, both Irish banks continued to notch up the gains.
Analysts said their performance was being fuelled by the expectation that one or the other might be included in the Dow Jones Eurostoxx 50 index of blue-chip shares.
Meanwhile, Kerry shares gained more than 5 per cent as Swiss rival, Givaudan, issued better-than-expected results.
Elsewhere, things looked gloomier. In London, the FTSE index of leading shares lost 2.4 per cent with banks, oil and drug stocks proving the heaviest losers. Banking stocks accounted for more than a quarter of the FTSE's fall. "We are still seeing more earnings downgrades than upgrades and that doesn't bode well in the near term," one equity strategist said.
In France, shares fell by more than 4 per cent after media giant Vivendi announced a dizzying first-half loss that wiped out a quarter of its market value.
German shares were down 3 per cent as poor results from insurance group Allianz shocked investors and heightened fears that an economic upturn was turning down again. - (Additional reporting: Reuters)
