Exceptionally strong interim results from AIB set the tone midweek, with the bank's shares touching 20 by close of business on Wednesday, a gain of 1 on the previous week's close.

AIB's bullish outlook, including a forecast that earnings will grow by more than 20% for the year as a whole, helped to lift all "nancials. AIB "nished the week at 19.95.

Ryanair was more downbeat at its "rst-quarter results on Tuesday, warning of a dif"cult winter ahead because of rising oil prices. The shares shed 25c on the day to close at 7.54, although they pulled back slightly later in the week.

Acquisition-hungry CRH announced on Tuesday that it was paying $50m ( 39m) cash for a 50% stake in American Cement Company, which plans to start production in Florida in 2008.

CRH shares "nished at 26.23, up 3.5% on the week.

House builder McInerney was also brandishing its cheque book, paying 34.5m for British building company Bowey Homes. But the deal failed to ignite the share price, which closed the week at 10.75, down 18c.

Computer services group Horizon Technologies was also in buying form, paying 1.15m for WBT Systems on Friday. The shares were unchanged at 0.84.

Optimism over US interest rates also helped European stocks "nish the week on a high note. The Dow Jones Stoxx 600 index added 1.2% to 327.87 on Friday, rebounding from the previous day's drop. The benchmark Euro Stoxx 50, a measure for the 12 nations sharing the euro, also advanced 1.4% on Friday.

Investors are upbeat about corporate earnings, despite the trend of rising European interest rates.

Companies in the Stoxx 50 may be headed for the best earnings season in at least 11 quarters, according to analysts. Of the 35 to report earnings so far, 74% have exceeded estimates.

Analysts expect pro"ts for companies in the Stoxx 600 to rise 12% on average this year, according to data compiled by FactSet Research Systems in London. Two weeks ago the projection was 11%.

German insurance giant Allianz reinforced the trend on Friday by forecasting net income of 6bn this year, up from an earlier forecast of 4.9bn.

"European companies are having a great reporting season, " said Jamie Coleman of EFG Wealth Management in London. "The outlook for corporates looks to be in pretty good shape despite the threat of further rate hikes."

"Earnings have been fantastic, and I think the tide is turning for European markets, " said Andreas Gartner at SEB Investment-Fonds GmbH in Frankfurt.

"The increased number of cash returns we are seeing is a very positive sign."