Irish shares fall 4% as euro plummets

FEARS about the future of the euro yesterday led to the currency collapsing to its lowest level since the fall of Lehman Brothers, while Irish shares fell almost 4%.

In what was another turbulent day on world stock markets, the ISEQ closed down 3.7% to 3,101 points. AIB nose-dived almost 8% to €1.24, while Bank of Ireland was down close to 5% at €1.53.

Irish Life and Permanent fell 6.2% to €2.39.

The airlines were mixed, with Ryanair falling 4.6% to €3.35 and Aer Lingus climbing 1.4% to 73 cent. CRH fell 7.2% to €18.22.

British stocks tumbled by the most in almost six months, led by a sell-off in banks and mining companies. In Paris, the CAC 40 plunged 4.59% and in Frankfurt the DAX tumbled 3.12% to 6,056.71 points.

Earlier this week Deutsche Bank chief executive Josef Ackermann cast doubt on Greece’s ability to repay its debt and said the eurozone rescue package will help stabilise Italy and Spain, while the situation in Portugal was more difficult. Mr Ackermann, one of Europe’s top bankers, helped put together a rescue package for Greece.

Across Europe stocks also fell, with the Euro Stoxx 50 Index of euro-region equities tumbling 5%, its biggest drop since March 2009.

Spain’s IBEX 35 tumbled 7%, the biggest decline since October 2008.

The euro hit 18-month lows against the dollar. After rising to around $1.31 following last weekend’s emergency package, it had fallen as low as $1.2433 by mid-morning yesterday.