European shares bounce back

EUROPEAN shares rebounded from seven-year lows yesterday.

Gains were broad-based, supported because on dividend yield, stocks are now cheaper against bonds than for 30 years. The ISEQ index mirrored the international trend adding 80.70 points to close at 3830.36.

Ryanair soared 8.4% to 5.53, regaining all of Wednesday’s losses, as it appeared a UN vote on the Iraq war could be further delayed. Financial shares also recovered with Irish Life & Permanent adding 6.3% to 9.25, Anglo Irish gaining 16c to 6.43 and AIB 21c stronger at 12.78.