World shares and the euro gained today as expectations grew that the acute financial problems in Spain and a deteriorating economic outlook would prompt Europe's central bank to respond with more stimulus measures.
While the European Central Bank (ECB) is not widely expected to cut rates when it meets later in the day, there is talk it could indicate a readiness to take some action as early as next month, given the escalating crisis in the euro zone.
Signs that the problems in Europe are hurting the global economy have also increased speculation that other major central banks may embark on a wave of policy easing moves, sparking a broad rally in gold, oil and riskier European government debt.
The FTSE 100 Index rose 1.5 per cent to 5,337.99 at 10.33 am in London, the biggest jump since May 24.
Dublin’s ISEQ index was also strong this morning, gaining 46 points or 1.5 per cent to stand at 3,008.
Shares in building materials group CRH were up 3.5 per cent to €13.44, while low-fares airline Ryanair added nearly 1.1 per cent to €3.97.
Kingspan gained 1.85 per cent to €6.71, while Providence Resources shares climbed 0.7 per cent to €6.75 after the company said tests from its Barryroe discovery off the Irish coast show that the oil there is of better quality than previously thought.
