Irish shares take a tumble along with all major European stocks
IRISH shares fell in line with the major European stocks, in a negative end to the week for the markets.
By the close in Dublin, the ISEQ Overall Index was down 2.04pc or 98.35 points to end the trading week at 4716.73.
European stocks fell the most since June, extending the Stoxx Europe 600 Index's weekly drop, as investors assessed a tumble in emerging market currencies amid concern Federal Reserve tapering is hurting growth.
The leaders on the Dublin market included shipping and transport group Irish Continental, which was up 0.2pc to €28.55, while Aer Lingus rose 0.21pc to €1.43.
Hibernia REIT increased 1.8pc to €1.12.
On the other side of the board, packaging giant Smurfit Kappa slipped 5.3pc to €18.10 while exploration company Providence Resources was down 5pc to €3.02.
Allied Irish Banks slipped 3.6pc to 14 cents.
Elsewhere, the Stoxx 600 slid 2.4pc at the close of trading, for a weekly loss of 3.3pc.
The pound fell from a two-and-a-half-year high against the dollar as Bank of England governor Mark Carney said the currency's strength may harm exports and pledged to keep down interest rates to support the economic recovery.
Sterling declined the most in seven weeks against the euro as Mr Carney said in a speech in Davos that policymakers will consider ways to update their guidance on the future path of interest rates bearing in mind a more "benign inflation outlook".
Emerging market stocks extended their weekly drop yesterday as currencies from commodity exporting countries that depend on Chinese demand sank the most in five years.
National benchmark indexes fell in all 18 western European markets. The UK's FTSE 100 slipped 1.6pc, Germany's DAX lost 2.5pc and France's CAC 40 retreated 2.8pc.
"We've had the worst start for equities in some years and after one of the strongest years people are looking for excuses to sell," said Witold Bahrke, a senior strategist at PFA Asset Management in Copenhagen.
Spanish Banco Bilbao Vizcaya Argentaria dropped 5.1pc on investor concern that its exposure to Turkey and Argentina will hurt earnings.
Swiss multi-national Novartis lost 3pc after failing to win backing from a European advisory panel for its Serelaxin treatment for acute heart failure.