| 16.7°C Dublin

Markets: Traders braced for new shares collapse

INVESTORS are cautious about today's trading in the main Dublin shares market after €4.5bn was wiped off shares yesterday. The ISEQ plunged 4.4pc to its lowest level since April of 2009, erasing much of the gains made since the collapse of Lehman Brother in November 2008.

Global stock markets continued to fall last night and the European markets are expected to follow suit today.

The fallout from Standard and Poor's downgrade of the US pushed world stocks to their lowest level in nearly a year and drove investors into the safety of gold and bonds.

Investors got out of the markets in the US as Wall Street saw its worst day of trading since the financial crisis of 2008. The 'safe havens' of gold and the Swiss franc recorded sky-rocketing values.

Asian markets also took a nosedive last night with major indexes losing up to 7pc. The main Nikkei index was down 1.7pc.

Yesterday, the Dow Jones plunged 632 points as about $2.5trillion was erased from global equities.