IRISH stocks fell as shares in cider-maker C&C, Ryanair and Dragon Oil all lost ground. European stocks fell the most in two weeks after China raised its benchmark interest rate and Apple's earnings forecast missed analyst estimates.
The ISEQ slid 16.66 points, or 0.6pc, to close at 2675.73 points. C&C fell 2.7pc to €3.16, a day after it was cut from 'buy' to 'hold' by analysts at Citi.
Ryanair slid 2.1pc to €4.05 as chief executive Michael O'Leary revived the possibility of a third bid for Aer Lingus. Dragon Oil slipped 0.9pc to €5.30, ahead of results that are due to be released today.
Petroneft, the ISEQ's best-performing stock so far this year, added another 9.9pc to close at 55c, after the Siberian-focused explorer completed a $43m share placing to accelerate its exploration programme. The shares have soared 139pc so far this year.
Another explorer with a similar name, Petroceltic International, also had a good day, adding 10.6pc to finish the session at 13c, after being rated a new 'hold' at Matrix by equity analyst Charlie Sharp.
UTV, which was rated as a new 'buy' at KBC Peel Hunt by equity analyst Patrick Yau on Monday evening, surged 8.1pc to €1.60.
Irish 10-year bonds underperformed similar-maturity benchmark German bunds, increasing the difference in yield, or spread, between the securities.
The yield on the 10-year Irish bond jumped 15 basis points to 6.24pc in London, with the spread over bunds widening 13 basis points to 375 basis points.
The Stoxx Europe 600 Index closed down 0.5pc, amid speculation that the Federal Reserve will announce further plans to stimulate economic growth at its November meeting.
Benchmark indices declined in 15 of the 18 western European markets, with the FTSE and CAC 40 sliding 0.7pc and Germany's DAX slipping 0.4pc.
Rio Tinto, the world's third-largest mining company, dropped 3.2pc, while rival Xstrata slid 4.4 pc.
China, the world's biggest consumer of copper, said the one-year deposit rate will rise to 2.5pc from 2.25pc and the lending rate will increase from 5.31pc to 5.56pc from today.
Porsche preferred shares slumped 8.7pc after Volkswagen boss Martin Winterkorn said Europe's largest car maker may put its merger with the sports car company on hold.
Banks advanced as Goldman Sachs and Bank of America released third-quarter results. Deutsche Bank, Germany's largest lender, gained 1.8pc, while UBS, the biggest Swiss bank, rose 1.7pc.
The Basel Committee on Banking Supervision said banks would have until 2015 to fully implement rules on how much cash and liquid securities they must hold to gird against a funding shortage in a crisis.