The ISEQ closed 10 points lower as investors cautiously began the start of the second quarter. But the usual mix of profit warnings and soft data returned to drag markets lower.
In Dublin the financial sector had a mixed day with Bank of Ireland the only significant gainer. AIB shed 10 cents to euro 11.38, First Active lost 10 cents to euro 2.40 and Irish Life and Permanent was down 10 cents to euro 12.30. Bank of Ireland gained 19 cents to euro 9.60 on hopes of an interest rate cut in Britain this week where the bank has more exposure than its Irish peers.
The leading Irish benchmark index was dragged down by a markdown in Elan's share price after it closed lower in New York on Friday night. Dealers in Dublin said the fall was expected as fund managers booked gains at the end of what was a miserable first quarter. Despite the recent market sell-off Elan is still almost 19 per cent higher since the start of the year.
The smaller caps also looked mixed today with Glanbia down 2 cents at euro 0.55, Grafton off 10 cents to euro 2.40. But overall volume was low with little corporate news to drive the domestic market.
London finished the first trading day of the new quarter in the red as concerns over corporate earnings and global economic outlook caused renewed losses in banks, oils and pharmaceuticals.
The FTSE 100 closed down 15.2 points at 5,618.5. Technology, media and telecoms shares remained weak in London but most of the losses came from defensive sectors, mainly banks and pharmaceuticals.
Railtrack was the biggest faller, shedding 17 per cent following the announcement of new funding and a warning on profits outlook. The government brought forward Stg£1.5bn of financing for the troubled UK rail operator which expects to report a substantial loss in the year ended March 31.
TMTs continued their downfall and Energis dropped 7.2 per cent, Misys was down 7.1 per cent, ARM Holdings lost 2.7 while Granda dropped 3 per cent.
US shares were mixed in early trade, with a profit warning from American Express reminding investors that the outlook on earnings remains gloomy.
But gains for most of the other 30 Dow components helped the blue chip index higher. At mid-session, the Dow was up 88.34 at 9,967.12, as an unexpected rise in March for a key manufacturing index helped fuel blue chip buying.