The ISEQ index OF Irish leading shares fell 62 points or 1 per cent to 5,881 today after Fed chairman Mr Alan Greenspan confirmed the US economic downturn is worse than previously thought.
Financial shares suffered in a weak European equity market with AIB down 17 cents to euro 11.78 and Bank of Ireland off 14 cents to 10.34.
Technology stocks also came in for a pounding after a weak opening on the Nasdaq. Iona is down euro 3.86 to euro 46.14, Marborough fell 10 cents to euro 1.00 and Eircom shed 2 cents to euro 2.38.
Ryanair is 18 cents lower at 12.18 on the day it announced it has chosen Charleroi Airport in Belgium as its European hub.
Shares in London were sharply higher in mid-afternoon trades, led by financial issues, buoyed by the breakdown of merger talks between Abbey National and Bank of Scotland and as Wall Street continued its recent erratic trajectory, dealers said.
Financial issues continued to lead the blue chips higher in London, with Abbey National shares spiking higher on news it has ended talks with Bank of Scotland.
Bank of Scotland continued to see good demand after news of the breakdown, up 63p at £15.73 - ahead of results tomorrow - while Abbey National gained 46p at £11.75, Alliance & Leicester added 18p at £6.91 and Lloyds added 12p at £6.60.