Fed fear wipes €1.3bn off ISEQ

MORE than €1.3 billion was wiped off the value of shares traded on the Irish Stock Exchange yesterday as stocks fell on bourses across the globe on fears of an increase in US interest rates.

Irish stocks fell, in keeping with drops in Asia and North America, on concern the Federal Reserve may raise interest rates in the US earlier than some investors had expected.

Financials took a major hit with high-flyer Anglo Irish Bank falling 4.8%, AIB down 1.55% and Bank of Ireland down 1.50%. CRH fell 2.66%, Elan was down 4.12% and Kerry Group fell 1.83%. The benchmark FTSE 100 Index posted its biggest fall in a year, losing 103.2 points, or 2.3%, to 4395.20.