Dublin report: The Irish market took a battering along with its global peers yesterday as worries about the sustainability of the US economy, fears about rising tensions in Iran and a near 9 per cent drop in Chinese shares pushed any local news to the side.

"It was like Armageddon," said one trader, adding that the Iseq had only taken about five such one-day hits since its creation. Volumes were decent, as the Iseq dropped 3.5 per cent, to close at 9,536.

The financials were particularly badly hit, with AIB and Bank of Ireland leading the way downwards. AIB closed down 97 cent, or 4.1 per cent, at €22.48 on three million trades. Bank of Ireland, meanwhile, was a bit quieter, with only 1.3 million shares changing hands, though the stock was down 80 cent, or 4.4 per cent, at €17.60.

Anglo, meanwhile, dropped 45 cent, or 2.7 per cent, to €16.09.

All the Irish banks have put in good gains of late in the run-up to results. Irish Life & Permanent, which is due to release its full-year figures today, was down 85 cent, or 3.8 per cent, at €21.60.

Ryanair was also badly hit, dropping 36 cent, or 6 per cent, to close at €5.64.

Elsewhere, food group Kerry, which reported full-year results in line with market expectations, failed to inspire and got caught up in the general negative sentiment. The company reported a 25 per cent drop in pretax profits, having warned in May last year that profits would be hit by rising energy costs and a weak dollar.

The shares fell 34 cent, or 2 per cent, to close at €20.12.

United Drug was also a victim of the general mood, dropping 23 cent, or 5.7 per cent, to €3.80, despite saying at its AGM that profits in the first quarter were ahead of the same three months last year, and that prospects for the full year were good.