News that economic sentiment in the eurozone surged to a 28-month high in June along with strong European and US corporate earnings helped push the ISEQ higher this morning.

By 12:30, the index had gained 14.83 points to 2,926.35.

European stocks rose on Thursday, as strong earnings helped the market revive a week-long rally. European and U.S. stocks retreated on Wednesday after weak U.S. durable goods figures and a downbeat assessment of the economy from the Fed's Beige Book prompted investors to book profits following a week-long rally and ahead of Friday's first reading of the U.S. GDP for the second quarter. However, investors got some relief on the macroeconomic front in Europe on Thursday, with data showing euro zone economic sentiment improved more than expected in July, signalling a sustained economic recovery for the region as it overcomes the sovereign debt crisis.

Shares in AIB were flat at E0.94, Bank of Ireland edged up 1c to E0.83 and Irish Life and Permanent rose 4c to E1.78.

United Drug's shares rose 2c to E2.41 after it said trading across the group in the past few months has been satisfactory, with a strong performance in parts of the business. In an interim management statement today, the company said that group profits for the nine months to 30 June 2010 are in line with last year, and cash flows continue to be strong. United Drug said that the introduction of a further cut in the price of off-patent medicines in Ireland has resulted in a fall in the value of the wholesale market since last February. It said that while its wholesale division has outperformed the market, revenues have declined - in line with expectations.

The Global Technology Distribution Council (GTDC) reported that the IT industry recovery continues to gain strength, led by substantially stronger US market sales and increased stabilisation in Europe. The GTDC's industry trends are based on actual sales results of its members, who are some of the world's largest IT distributors, representing more than $100bn in annual sales. DCC Sercom is a member of GTDC. DCC's shares rose 2c to E18.56.

Merrion Pharmaceuticals this morning announced that its new facility has been granted a licence under the EU Clinical Directive for Investigational medicinal products, by the Irish Medicines Board. This means that the 30,000 sq.ft. facility can now be used to develop drug products and manufacture drug candidates for clinical development. Shares in Merrion gained 25c to E4.10.