Equity markets were in turmoil again today on renewed fears that government action to support the financial sector would fail to halt a global recession.
European Union leaders, meeting in Brussels, pressed for an overhaul of the global financial system to prevent a repeat of the credit crunch that sparked the biggest stock-market selloff since the Great Depression.
But the move was overshadowed by stock market losses across the globe. Dublin's Iseq index closed the day 102 points or 3.6 per cent with the main financials being the worst hit.
Bank of Ireland down 17 cents or nearly 8.4 per cent to €1.85 and Allied Irish down 16 cents or 5 per cent to €3.05.
Anglo Irish were also badly affected by the continued volatility falling 18 cents to €2.07. Irish Life and Permanent was the notable exception rising 25 cents to €4.10 after yesterday's fall of almost 4 per cent.
US stock indices initially dropped over 3 per cent as signs of regional weakness in manufacturing and poor corporate results fuelled further recession fears but then later rallied.
Britain's top share index fell to its lowest in over five years, as banks and commodity shares were again battered by global recession fears.
The FTSE 100 closed down 218.2 points at 3,861.4 points, after falling as low as 3,808.1, its lowest level since April 2003.
The German DAX index ended at 4622.81 points, down 238.82 or 4.91 per cent while the French CAC-40 index closed at 3181 points, down 200.07 or 5.92 per cent.
The Nikkei average tumbled more than 11 per cent overnight in its biggest one-day fall since the 1987 stock market crash after weak US economic data intensified fears that recent global financial rescue measures will not be enough to stave off a recession.
The benchmark erased a majority of the gains made on Tuesday, when it soared more than 14 per cent, the biggest one-day gain in its 58-year history, after governments around the world pledged to support struggling banks. It is down nearly 45 percent so far this year.
Switzerland's two largest banks - UBS and Credit Suisse - became the latest to say they were receiving emergency funding as the country's government and other investors moved to shore them up.
Japan's Prime Minister, Taro Aso, said Washington may need to push yet more cash into its banks to restore investor confidence, shattered by a crisis that began with a US housing market collapse and now threatens economies worldwide.
The benchmark Nikkei shed 11.4 per cent or 1,089.02 points to finish at 8,458.45, though it still held above 8,115.41 touched last week, which was its lowest point since May 2003. The broader Topix index lost 9.5 percent to 864.52.
Reuters