The Iseq index of leading shares followed other markets into negative territory today.
By 1.45pm the Iseq was trading down 49.01 points at 2,838.69.
World stocks slid for the fourth day in a row as investors grew sceptical that the speed of the global economic recovery would match the sort of financial market optimism that has fuelled a 40 per cent rally in the second quarter so far.
Mining stocks led the losses in Europe as commodity prices also showed some reversal.
Doubts about the heralded global economic recovery are starting to weigh on sentiment everywhere after some US economic indicators this week came in below expectations, raising fears that investors may have pushed up equity and commodity prices too quickly.
Stock corrections have been relatively tame so far but they have taken world stocks as well as emerging equities down to three-week lows.
In Dublin, banking shares weighed heavily on the index after Taoiseach Brian Cowen was forced to refute opposition claims of confusion on the Government's part over the establishment of the National Asset Management Agency (Nama).
Speaking during leaders questions this morning Mr Cowen said the Government plans to publish legislation relating to Nama before the Dáil rises for the summer recess.
Shares in AIB were down 25c to €1.87 while Bank of Ireland declined 18c to €1.74 and Irish Life and Permanent fell 14c to €3.32.
Construction-related shares also helped to drag the index down.
Shares in heavyweight CRH were down 9c at €17.81, while Grafton declined 8c to €2.80 and Kingspan 21c to €4.56
Other movers on the Dublin market included food group Aryzta, which was up 15c to €22.65 and insurer FBD which declined 9c to €7.46/
Elsewhere, a positive investor sentiment reading yesterday in Europe's biggest economy, Germany, was overshadowed by poor industrial output data in the United States and disappointing sales by top US retailer Best Buy which spurred worries about an anaemic recovery and pushed Wall Street down over one percent.
By 11.30 am, the pan-European FTSEurofirst 300 was down 1.3 per cent, with miners such as Anglo American and Rio Tinto leading the losses. Spanish utility Iberdola and British supermarket chain J Sainsbury, both of which announced share issue plans, also fell.
Around Europe, the FTSE 100 index was down 0.7 per cent, Germany's DAX index down 0.8 per cent and France's CAC 40 down 0.7 per cent.
Additional reporting: Reuters
