The Irish index of shares continued in positive territory, although stocks gave up some early gains.
The Iseq was up 29.86 points shortly after 3.30pm, rising to 2740.53, more than 1.1 per cent up on yesterday.
CRH rose 2.5 per cent to €12.62 this afternoon, after closing up 2.3 per cent at €12.31 yesterday. The stock yesterday shook off news that Fitch had downgraded CRH's long-term issuer default rating and senior unsecured notes to BBB from BBB+.
This morning, Davy Stockbrokers said the move should have only "minimal impact" on funding costs.
Grafton Group made more modest gains, rising 0.7 per cent to €3.17.
Financial stocks also made some gains, with Bank of Ireland stock rising 2.5 per cent to 68.2 cent, and Irish Life and Permanent up 0.7 per cent to €1.49.
AIB was off 5.1 per cent, at 45 cent. Last week, the Central Bank said the bank would require an additional €3 billion in capital. Minister for Finance Brian Lenihan confirmed the State would likely take a majority stake in the firm.
The bank is currently attempting to sell off its 22.4 per cent stake in US bank M&T in a public offering of the shareholding after talks with potential buyers failed.
Irish Government bond yields rose to 6.472 per cent at 3.42pm, up from the opening level of 6.382. Ratings agency Fitch today downgraded Ireland's rating, a day after Moody's said it was putting its rating under review.
Elsewhere, US Treasury debt prices climbed today, pushing benchmark note yields to the lowest since
January 2009, after ADP Employer Services said private payrolls unexpectedly contracted in September. The ADP report cast a pessimistic pall over expectations for September's non-farm payrolls numbers from the government, due on Friday, and bolstered the safe-haven allure of US government debt.
The report also supported expectations the Federal Reserve will eventually have to step up its program of asset purchases in an effort to bolster the economy.
Benchmark 10-year notes were trading 20/32 higher in price to yield 2.40 percent, down from 2.47 per cent late yesterday. The yield fell to as low as 2.38 per cent, the lowest since January 2009.
The five-year note was trading 9/32 higher in price to yield 1.14 per cent after dipping to a record low of 1.12 percent.
A stimulus pledge from the Bank of Japan to lift the economy also reassured investors.
Policymakers in the United States and Britain may further boost markets by more quantitative easing, analysts said. However, the Bank of England is not expected to unveil extra measures when it announces its interest rate decision tomorrow. The European Central Bank will also decides on rates tomorrow.
"The market is looking glass half full, rather than glass half empty," said Justin Urquhart Stewart, director at Seven Investment Management. "It's ignoring some of the negative ISM figures. And the bigger concern is the trade issue between Europe and China, and the currencies."
Additional reporting: Bloomberg
