The “relief rally” by markets on the outcome of the first round of the French presidential elections makes it likely that the Government will get its planned sale of AIB shares away by early summer, a leading analyst has said.

Brexit, the Donald Trump presidency and a rise in isolated terrorist attacks were some of the shocks that investors faced in 2016, writes Ryan McGrath.

Irish bank shares posted gains despite continuing fears about the health of Italian lenders and a cautionary report from Fitch Ratings on the outlook for Irish lenders after Brexit.

Markets took a lost referendum and the resignation of Italian prime minister Matteo Renzi on the chin, but Irish taxpayers and Government advisers here will be peering into the distance to see what European elections next year will hold for the sale of AIB, as shares in Italian banks fell sharply.

Irish bond markets, along with other debt markets in Europe, traded wildly yesterday, while CRH rose again on stock markets as investors tried to second-guess the effects of the unexpected election of Donald Trump will have on Europe’s politics and companies.

Sterling will slump to 90 pence against the euro in the coming months in the wake of the Brexit vote, putting pressure on Irish firms exporting to Britain, leading analysts have predicted.

Italy’s bond markets were rocked by the Brexit vote amid reports Rome is considering injecting capital into some lenders battered by a fresh selloff.

AIB said it’s delivering in cutting mortgage rates and was confident its provisioning for bad loans and its accounts were up to scratch after a whistleblower approached regulators.

Irish bonds outperformed its eurozone peers in the first trading day after Moody’s Investors Service upgraded Ireland’s debt pile and delivered a better-than-expected scorecard on the country’s economic outlook.

Moody’s Investors Service has become the first authoritative international voice to play down the potential shock to the Irish economy were the UK to vote next month to leave the EU.

The benefits for Irish consumers may be limited even as the price of crude oil fell yesterday, analysts said.

Irish exporters eyeing the British market got some relief yesterday as sterling halted its slide against the euro for the first time in three days.

Eurozone banks should be encouraged to keep more of their profits rather than pay dividends, to bolster their capital, and finance new loans, the head of research of the Bank of International Settlements said yesterday.

AIB says it’s in good enough shape for the first slice of the bank to be sold off later this year, and hopes that turbulent market conditions will have settled by then.

The implied cost of borrowing on bond markets for Ireland yesterday fell to its lowest level since April as international traders — as had been expected — ignored the uncertain outcome of the Dáil election.

There is little to no significant political risk flashing red in Irish bond prices, senior experts have said, although that might change in the event that a hung Dáil leads to a prolonged period in forming a new government.

Debt issuer the National Treasury Management Agency sold €1bn of 10-year debt to investors yesterday at a yield or interest rate just below 1%, reflecting in part the worldwide flight to safety into government securities, as stock markets tumbled again.

The costs of borrowing for Ireland and other eurozone countries leaped yesterday, European stockmarkets sank, and the euro surged against the dollar and sterling.

Investors sought safety in low-risk government debt yesterday after Turkish jets shot down a Russian warplane near the Syrian border, while European tourism-linked stocks fell after a US travel warning due to “increased terrorist threats”.

Irish elections will soon loom large for investors as political uncertainty yesterday helped send the borrowing costs of Portugal and Spain significantly higher.

Taking stock after a month of crisis, analysts said yesterday that most European bond yields, including Ireland’s, have weathered well as fears about the Greek exit abated, while the euro has weakened against sterling as the UK interest rates rise draws closer.

With eurogroup finance ministers talking tough and still no deal sealed with Greece by yesterday evening, investors are being warned of choppy waters ahead for markets in the coming days.

Market hopes for a Greek deal went on something of a roller coaster ride as initial pessimism turned to hopes after confirmation that Greece would likely table its formal bailout plan to the European authorities later today.

The lack of any 11th-hour breakthrough in talks between Athens and key eurozone leaders meant markets were little riled by the failure of Greece to meet the repayment to the IMF due yesterday.

Volatility continued to hit the Irish bond market and the euro, as investors waited nervously for news on whether Greece and its creditors would fall short in negotiations over its repayments to the IMF.

Operating losses at the Irish arm of international brokerage firm, Cantor Fitzgerald last year fell 67% to €408,043.