The Dublin market has gone through what analysts described as a “topsy turvy” morning, opening higher before falling sharply only to recover somewhat before lunch.
At 12.26pm the Iseq index of Irish shares was 0.08 per cent lower at 5,226 having earlier touched lows of 5,141.
Oil reaching a new record high today just under $142 and the news sent European bourses lower with travel and banking stocks under pressure.
In Dublin it was no different with Irish financial stocks continuing to slide. Anglo Irish Bank shares were 3.4 per cent lower at €6.27 and Bank of Ireland was 1.5 per cent off at €5.81.
Having seen over 10 per cent wiped off its value yesterday, Irish Life and Permanent shares were 0.6 per cent behind today at €7.90. Allied Irish Banks alone of the financials had eased into positive territory by the midway stage, adding 0.36 per cent to €9.53.
And with oil prices on the rise again it was no surprise that the airline stocks were also under pressure this morning.
Having fallen over 5 per cent in early trade Ryanair shares were 2.5 per cent lower at 12.26pm on €2.71; Aer Lingus stock eased back 2.3 per cent at €1.49.
With cement prices volatile, CRH shrugged off a 9 per cent fall yesterday to add 3.5 per cent today to €17.75. Traders said there was little market news behind the moves with construction stocks generally subject to sharp sentiment swings.
Pharmaceutical group Elan continued its recent good run, adding 0.45 per cent to €22.30.
Stocks fell in Europe and Asia, heading for the worst first half in at least 16 years, as
investors speculated record oil prices and higher borrowing costs will erode earnings, while analysts said banks will need more capital.
Daimler AG and Ryanair retreated after crude topped $141 a barrel. Carrefour SA declined as Europe's biggest retailer cut its sales forecast.
Shanghai Pudong Development Bank Co. led China's stocks lower on concern authorities will raise interest rates to tame inflation. Barclays Plc slipped after Citigroup. said the bank may have to raise $18 billion.
"Obviously the longer oil stays at a high level the more a recessionary impact that has,'' Bob Parker, vice chairman at Credit Suisse Asset Management in London with $600 billion, said in a Bloomberg Television interview in London.
"Capital raising by the banks has meant that the financial-services sector has remained under pressure."
"The MSCI World Index lost 0.3 per cent to 1,399.06 at 11.27am in London, bringing this week's drop to 2.2 per cent, the fourth straight weekly decline. Futures on the Standard & Poor's 500 Index added 0.2 per cent, while China's CSI 300 Index sank 5.5 per cent.
Additional reporting Bloomberg
