But the Iseq finished the week virtually flat, closing at 7,869.35, up just 0.61%, as Irish financials suffered continuing aftershocks from the Northern Rock collapse.

European stocks gained this week after the Federal Reserve lowered its benchmark lending rate more than economists predicted to keep the world's largest economy growing. BHP and BP paced gains by mining and energy companies as commodity prices rose and oil climbed to a record. Vinci led an advance by construction companies, among the most sensitive to economic swings.

Nokia, the world's largest mobilephone maker, also rose.

The Dow Jones Stoxx 600 Index added 2.4% this week. The measure has rallied 6.9% since reaching a five-month low on 16 August, recovering more than half of the losses incurred in the global stocks rout originated by US subprimemortgage defaults in July.

The half-point reduction in the federal funds rate to 4.75% was larger than most economists surveyed predicted. Policy makers said they based their decision on the "potential" for the sell-off in credit markets to sti"e economic growth.

National benchmarks rose in all of the 18 western European markets.

Germany's DAX Index added 4% for the week, while France's CAC 40 gained 2.9%. The UK's FTSE 100 advanced 2.7%. The Stoxx 50 climbed 2.7%, and the Euro Stoxx 50, a measure for the euro region, rose 3.5%.

Northern Rock, the UK lender bailed out by the Bank of England, sank 56% after customers lined up at Northern Rock branches across Britain to withdraw their savings.

BHP Billiton, the world's biggest mining company, gained 11%. Rio Tinto, the third-largest, advanced 9.2%. Vedanta Resources, India's largest producer of copper and zinc, rallied 14%.

Copper futures jumped 4.8% this week in London to the highest since July. The Dow Jones Stoxx Basic Resource Index rose 8.3% to a twomonth high. Gold soared to the highest in 27 years, while copper and nickel rose to the highest since July, after the Fed cut its benchmark rate for the "rst time in four years.

BP, Europe's second-largest oil company, rose 3.7%. Paris-based Tot a l increased 3.3%. Crude oil touched a record $83.90 a barrel on the New York Mercantile Exchange this week. Oil prices set records seven straight days as the chance of a storm increased, a report showed US stockpiles dropped more than analysts had expected and the falling US dollar raised commodity prices. The dollar fell to a record low against the euro on speculation the Federal Reserve will keep cutting US interest rates.

Vinci, the world's biggest builder, rose 10%. Ferrovial, Spain's secondlargest builder, added 7.2%.

Hochtief, Germany's largest builder, gained 18%. The Dow Jones Europe Stoxx Constructions & Materials Index advanced 3.9%. The benchmark for European builders has tumbled 11% this quarter.

Northern Rock sank after customers withdrew an estimated �2bn and on speculation it may be acquired for less than its market value.

The stock pared losses Friday, rising 4.9% after the UK Treasury said its guarantee on the deposits of Northern Rock will cover renewals as well as existing accounts.

Other British mortgage lenders also fell. Alliance & Leicester, Britain's seventh-largest bank, tumbled 16%. Bradford & Bingley, the biggest lender to British landlords, slipped 9%.

Renault, France's second-biggest carmaker, and Fiat of Italy gained after Goldman, Sachs recommended investors buy auto stocks. Renault rose 7.8 % while Fiat gained 5.2 %. London Stock Exchange Group jumped 29% to a record, after Dubai and Qatar, competing to become the Persian Gulf's biggest "nancial center, bought stakes in the exchange.

Belgium, er, celebrated 100 days without a government last Tuesday.

The political limbo has created speculation that the low country could face partition if a government can't be formed. This raises the question of how to divide Belgium's national debt, which now stands at 90% of GDP. Do the richer Flemish take on more of it, or should the less wealthy Walloons have to bear the load?

Equity movers
IRISH SHARES GAINERS Company Price + % Thirdforce .18 16.13 Petroceltic .155 10.71 Elan 14.44 9.94 C&C 6.72 9.22 Trintech 4.24 5.74 Fyffes .945 5.00 Smur"t 16.30 4.49 Paddy Power 25.20 4.13 DCC 20.10 3.82 Glanbia 4.21 3.19
LOSERS Company Price - % QUAL CERAM SHIRES 1.39 -15.76 McInerney Holdings 1.79 -11.82 FBD 23.743 0.23 Abbey Plc 7.79 -9.42 Glencar Mining .127 -8.62 Trinity Biotech $1.85 -7.50 Grafton Group 8.316 -7.08 Independent N&M 3.113 -6.52 Newcourt 1.40 -6.04 Worldspreads 64p -5.88

INTERNATIONAL GAINERS Company Price + % Siemens 97.35 16.13 Goldman Sachs $208.96 9.62 Nokia 26.25 7.89 Barclays 633.5p 6.29 Google $560.16 5.94

LOSERS Company Price - % Northern Rock 194.3p -55.64 Marks&Spencer 567p -5.03 Ericsson SEK25.6 -2.44 BT 309.25p -2.21 .

NUMBERS

DUBLIN ISEQ 7,869.35 UP 0.61% .LONDON FTSE 100 6,456.70 UP 2.66% .

THE WEEK AHEAD

EUROPE DJ STOXX 50 4,370.35 UP 3.53% .NEW YORK Dow 13,819.38 UP 2.80% NASDAQ 2,671.22 UP 2.65% .OIL Brent = $78.41 UP 1.3% .EURO/DOLLAR 1= $1.4081 UP 1.6% MONDAY Federal Reserve chairman Ben Bernanke delivers speech Eurozone industrial orders Results: IAWS, Wolseley TUESDAY Bank of Ireland trading statement External trade US existing home sales, house prices German Ifo survey Bank of Japan minutes to August monetary policy meeting Results: McInerney WEDNESDAY Finance Ireland EGM International Council of Management Consulting Institutes (ICMCI) World Congress (through Friday) ECB president Jean-Claude Trichet delivers speech in Maastricht UK GDP, current account US durable goods Results : H&M THURSDAY GDP, current account Eurozone money supply UK index of services US GDP, new home sales German unemployment FRIDAY Ryanair investor day, London Larry Sanger, co-founder of Wikipedia, speaks at Institute of European Affairs Construction output Eurozone harmonised consumer prices, business and consumer confidence US personal income and spending, consumer confidence, Chicago PMI, new construction German import prices Results: IKB, JJB Sports The week ahead