Aggressive US move boosts markets

Markets the world over performed strong on foot of an aggressive move from the US Federal Reserve after hours on Thursday.

Fed chairman Ben Bernanke unveiled an open-ended QE3 operation which will equate to $40bn (€30.5bn) in spending per month until the effective unemployment rate state side reduces to 7%. This massive stimulus package, on top of the current Operation Twist, boosted investor’s risk appetite worldwide. The US target interest rate will also remain at current levels for at least another three years. The ISEQ index gained 40.62 points to finish at 3303.13.

Financial stocks in all jurisdiction were amongst the leaders of Friday’s market rally and Ireland was no different. AIB jumped 0.5c, or 9%, to close at 5.9c. Bank of Ireland and Permanent TSB Group followed suit, both adding 0.4c to 10.2c and 2.9c respectively. The construction sector was also on the crest of a wave as all three major Irish quoted constituents made headway. CRH moved on 31.5c to 15.735, while Grafton Group and Kingspan were also gainers. The former was 12c ahead at 3.40, while the latter added 15.5c to 8.225.