IRISH shares fell yesterday, as German chancellor Angela Merkel dampened hopes of a deal for Ireland on its debt burden and the euphoria following last week's announcement of more quantitative easing in the US began to wear off.
By the close of trading in Dublin the ISEQ Overall Index had dropped 0.65pc, or 21.49 points, to close at 3,281.54.
It was only the third loss for the ISEQ out of the last 13 sessions, and in percentage terms was the biggest slide since August 30.
The market climbed early but fell sharply after Ms Merkel's comments. The German leader told reporters in Berlin that our bailout was "on a very good course" and she did not see a need for changes to a rescue programme at the moment. Expectations of a deal on Ireland's bailout terms are seen as key for attracting investors back to Irish sovereign debt.
In percentage terms, Smurfit Kappa was the big faller. The packaging firm slid 5.6pc to €7.51 after a 12pc rise last Friday.
Construction materials giant CRH dropped 1.6pc to €15.46. Analysts at Credit Suisse recommended selling the stock in favour of a rival.
Agronomy company Origin Enterprises slid 2.8pc to €4.10 ahead of its half-year results announcement on Wednesday.
Few stocks made significant gains, although the food sector fared well. Glanbia added 2.42pc to reach €6.97 as the company prepares to sell off part of its dairy business. Speciality baker Aryzta rose 1.4pc to €40.80, while fruit company Fyffes climbed 1pc to 51c.
Elsewhere, national benchmark indices fell in all of the 18 western European markets, except Belgium. Germany's DAX slipped 0.1pc, the UK's FTSE 100 declined 0.4pc, while France's CAC 40 dropped 0.8pc. The benchmark Stoxx Europe 600 Index slipped 0.3pc.
ThyssenKrupp, Germany's biggest steelmaker, slid 4.5pc after UBS downgraded the stock to sell from neutral.
H&M declined 1.6pc as Europe's second-largest clothing retailer reported third-quarter sales that missed analysts' estimates after an August heatwave in the region hurt business.
Vodafone, the world's second-largest mobile-phone operator, slipped 1.3pc after chief financial officer Andy Halford said the company may make a provision to cover legal risks relating to a $2.2bn (€1.7bn) tax bill in India.
Vivendi, Europe's biggest media and telecommunications company, declined 1.9pc after the stock was cut to sell from neutral at UBS.
Lonmin, the third-biggest platinum producer, surged 5.6pc. Bishop Jo Seoka, who was assisting in talks between the company and its workers, said staff have agreed to lower their pay demands, without giving further details. .