Market Report: Sentiment was negative around Europe yesterday despite the European Central Bank (ECB) leaving interest rates unchanged. Attention instead focused on the future and comments by the bank's president, Jean-Claude Trichet, that he would do whatever was necessary to contain inflationary pressures.

This in turn reinforced market expectations that the ECB will raise interest rates next month and possibly again in the new year.

As a result, the financials put in a generally negative performance and helped drag the whole Iseq in a downward direction.

There were, however, two positive blips on the horizon. The first was Anglo Irish, which hit a new high of €14.53, before falling back to close up eight cent, or 0.6 per cent, at €14.35. The majority of the trading was done by one brokerage, which reported significant buying interest in the stock.

The dealer did say, however, that he expects the stock to retract slightly now and trade more in line with its peers, which all declined on the day.

The second blip was DCC, which continued its recent good run, ending the day up 35 cent, or 1.6 per cent, at €21.75. Dealers reported significant interest in the stock ahead of interim results this month.

Elsewhere, several stocks were subject to profit-taking after recent good runs, with the most affected of those being C&C. The drinks and snacks maker, which has benefited in recent times from the ongoing positive sentiment surrounding its cider story, dropped 29 cent, or 2.2 per cent, to close at €12.71.

CRH, which put in a strong performance earlier in the week on the back of positive numbers from some of its building material peers in the US, also lost ground, ending the day down 38 cent, or 1.4 per cent, at €27.45.

Volumes weren't particularly large in either stock however.