Shares fall to 2011 low as recession fears increase

IRISH and European shares fell to near year lows yesterday as gold hit new records as investors sought a safe haven amid fears the US will re-enter recession and Italy and Spain could be frozen out of sovereign dept markets just like Ireland, Portugal and Greece.

European stocks tumbled to the lowest level in 11 months amid concern that a slowdown in the world’s largest economy may derail global growth.

Irish financial stocks fell 3.4%. Bank of Ireland fell 4c to 10.1c. AIB weakened 0.4c to 10.5c. Irish Life & Permanent lost 0.7c to 4.1c, with insurance group FBD Holdings closing down 5c at €6.88.