Global markets fail to sustain gains

GLOBAL stock markets turned tail again yesterday losing much of Tuesday’s gains as the euphoria triggered by the 0.5% cut in US interest rates failed to sustain investor confidence in the world’s stock markets.

After Tuesday’s splurge which saw Irish shares gain over €4 billion they lost close to €3bn of that figure again yesterday as doubts about the impact of the credit crunch and serious worries about the Irish economy in particular hit investor sentiment.

Again the banks were the target of significant share sell-offs with Irish Life & Permanent down 1.52% and AIB off by more than 3% as worries about the financial sector’s exposure to the construction sector continue to undermine sentiment towards the banks and construction companies.