World stock prices fell for the fourth day running today and the dollar traded close to two-month lows on growing concerns of slowdowns in the United States and China - the two main pillars of global growth.
The Iseq was trading flat at 2843.25, less than 1 point down.
Irish banks rose on the Dublin market today, with AIB gaining 8.9 per cent to almost 89 cent, while Irish Life and Permanent was up 3.5 per cent to €1.48. Bank of Ireland was marginally off at 63 cent.
Data showing the US labour market shrank for the first time this year in June, slower Chinese manufacturing activity and euro zone austerity measures fuelled concerns over prospects for the global economy.
"Double-dip (recession) fears are the pervading influence on market psychology at present even as European sovereign (debt) concerns appear to be easing," said Mitul Kotecha, global head of foreign exchange strategy at Credit Agricole CIB in Hong Kong.
World stocks measured by MSCI All-Country World Index drifted 0.1 per cent lower after three consecutive sessions of declines. The index has lost 16 per cent since mid-April, and is down 11 per cent for the year.
The index carried a one-year forward price-to-earnings ratio of 11.9, a level last seen in April 2009 and well below its 10-year average of 15.42, according to Thomson Reuters DataStream.
By comparison, MSCI emerging equities index had a one-year forward P/E of 10.76, in line with its 10-year average of 10.8, DataStream showed.
Europe's FTSEurofirst 300 was flat, with the continent's banks dipping 0.1 percent.
French economy minister Christine Lagarde said on Saturday that stress test results to be published on July 23rd will show that "banks in Europe are solid and healthy."
However, "there is a certain amount of scepticism that the stress tests (on banks) ... will either be fudged or the complete results won't be published. What we need is clarity," said Felicity Smith, fund manager at Bedlam Asset Management.
In Asia, Tokyo's Nikkei average put on 0.7 per cent, while the Shanghai Composite Index dropped 0.8 per cent.
Global growth worries also sent German government bond futures 25 ticks higher to 129.56 from Friday's settlement close, and yields on benchmark 10-year Bunds fell 2 basis points to 2.564 per cent.