ISEQ falls for fourth trading day in a row
A decline in bank shares dragged European stocks down for another day, with the Stoxx Europe 600 Index extending a one-year low.
By the close in Dublin, the ISEQ Overall Index was down 0.67pc, or 42.59 points, to end the trading day at 6,279.71.
The leaders on the Dublin market included fruit company Fyffes, which increased 0.7pc to €1.52, and Ryanair, up 0.1pc to €14.42.
On the other side of the board, the laggards included speciality baker Aryzta, down 1.9pc to €39.91, and Green Reit, which slipped 3.1pc to €1.40.
Elsewhere, a third week of declines left the Stoxx 600 more than 20pc below its April record, meeting the common definition of a bear market. Yesterday, trading in its shares was about 18pc greater than the 30-day average.
"We see this as a buying opportunity for the mid or long term," said Guillermo Hernandez Sampere, head of trading at MPPM in Eppstein, Germany. "Still, volatility indexes are on levels which are far away from calm waters. We are still in risk off mode, so don't expect a V-shaped correction to the upside."
Worries over global growth and an oil rout took over sentiment, sending European equities back to where they were before the region's central bank announced it would start its quantitative-easing programme.
In 2016 alone, the Stoxx 600 has lost 10pc.
The VStoxx Index, a measure tracking volatility in euro-area shares, reached its highest level since September last week.
The declines took the Stoxx 600's valuation below 14 times estimated earnings for the first time since last January, while the multiple for the Standard & Poor's 500 Index fell to 15.3.
Futures on the gauge slipped 0.1pc yesterday, with US markets closed for a holiday.
Italian lenders Banca Monte dei Paschi di Siena and Banca Popolare dell'Emilia Romagna sank more than 8.5pc on concerns over the levels of their bad debt.
Additional reporting by Bloomberg