World stocks climbed for the third day this afternoon as European and Asian investors bet governments would succeed in ending the credit crisis and in controlling the global economic downturn.
Wall Street, however, looked set for a poor start, but the dollar hit a 1-1/2 year high against major currencies.
In Dublin the Iseq index was ahead over 5 per cent just after 1pm.
Sentiment in Europe and Asia was boosted overnight by comments from US Federal Reserve Chairman Ben Bernanke, who backed government spending as a fresh measure to boost the US economy.
Interbank lending rates were also fixed lower, fuelling a belief that government rescue plans were beginning to free up frozen money markets.
MSCI's all-country world stock index, a broad measure of global stock market performance, rose for the third trading day in a row and was nearly 12 per cent above five year lows hit on October 10th.
It remains down 39 per cent year-to-date, however.
"The market wants some kind of concrete economic steps, jointly if necessary, and Bernanke's comments have raised hopes that something will be forthcoming," said Hiroaki Osakabe, a fund manager at Chibagin Asset Management in Japan.
European shares rose in early trade, also extending their winning streak to a third day, with investors cheered by Bernanke and French government moves to bolster its banks.
France announced plans late last night to lend €10.5 billion ($14.12 billion) to the country's top six banks before the year end to prop up their capital reserves.
The FTSEurofirst 300 index of top European shares was up about 0.8 per cent with banks among the top gainers.
BNP Paribas jumped 9.3 per cent, Societe Generale soared 10.4 per cent and Credit Agricole rose 11.9 per cent. Earlier, the Nikkei average rose 3.3 per cent or 300.66 points to 9,306.25. The broader Topix rose 3.2 per cent to 956.64.
The dollar rose to a 1-1/2 year high versus a basket of currencies, fuelled by ongoing demand from banks for their funding needs.
Reuters