Banking stocks drag down markets
The ISEQ overall index of Irish shares closed down yesterday by 78.27, or 1.35pc, at 5722.68 as concerns over the health of the country's banks dragged stocks down.
Shares in Bank of Ireland, AIB and Permanent TSB all suffered significant drops as investors reacted to news that Irish banks remain vulnerable to a possible economic downturn.
BoI fell by 6pc, AIB was down 11pc, while Ptsb suffered losses of 3pc. Commodities stocks had the biggest gains of the day, with Ormonde and Ovoca Gold up 4pc and 13pc, respectively.
In London, the FTSE was down 0.9pc. The French CAC dropped 2pc and the German DAX fell by 1.9pc having been weighed down by lender Commerzbank, whose share price dipped to an all-time low after it issued a profit warning.
Investors were also spooked by the bank's poor performance in last week's stress tests by the European Banking Authority. The EuroStoxx 500 index also fell by 1.9pc.
In the US, markets were down despite the fact that consumer spending rose in June. The S&P500 fell by 0.8pc, the Dow had losses of 0.6pc while the Nasdaq closed down 1.1pc. Stocks fell after lower-than-expected results posted in the tech and car industries. Shares in Ford and GM dragged on stocks after it emerged US car sales were below expectations in July.
Pfizer, the largest US drugmaker, maintained its full-year forecast, despite reporting revenue and profit above analysts' estimates, sending its shares down 2.3 pc to $36.44. On the currency markets, the euro was trading at $1.12 and 84 pence sterling. The price of a barrel of crude oil fell below the sub $40 dollar level based on concerns of about a possible supply glut, trading at $39.56 at 16:15GMT.