Iseq: 2,639.15 (–71.21) Settlement date: August 8th:THE IRISH market joined in the equity sell-off again yesterday as the escalating European debt crisis and concerns over the global growth outlook spurred on a "flight to safety".

“It was a very ugly day on markets,” a Dublin trader said. “Everything was getting toasted.”

The Iseq index held its ground during the morning session, but nose-dived when US markets opened.

The SP 500 touched a new low for 2011 after fresh data showed that the US services sector grew more slowly than expected. While the Irish benchmark remains above its lows for the year, it has undergone a correction of almost 13 per cent from the highs recorded earlier in 2011.

On a day that brought very little stock-specific news, it was all “big picture stuff” driving market moves, the trader said.

Paper and packaging group Smurfit Kappa sank another 7.5 per cent, or almost 48 cents, to €5.91. One broker noted that highly leveraged stocks such as Smurfit had suffered the steepest losses of late because of expectations of a tighter credit environment in the future.

Drug manufacturer Elan gave up its recent strong run of form, declining almost 10 per cent, or 77 cents, to €7.25.

The Iseq’s largest component CRH has been struggling in recent sessions because of its significant exposure to the US. However, it performed well relative to the overall market, shedding less than 1 per cent to close just below €12.57. One broker said investors now felt the stock has reached a level where much of the negative news has been priced in.

Exploration company Dragon Oil was one of the few winners of the day, rising two cents to €6.10 after releasing a positive drilling update.

Overall the Iseq shed more than 2.5 per cent to close at 2,639.15.