Market down on US fears

THE ISEQ lost more ground yesterday to close down 71.21 points at 2,639.15. Markets were hit by a global sell-off of equities as growth concerns in the US spurred further risk aversion.

Figures released yesterday showed that the rate of growth in the US services sector slowed unexpectedly in July to the lowest level since February 2010. Fitch Ratings released a statement indicating that it is maintaining its AAA rating on the US government following the approval of the debt agreement. However, Standard & Poor’s and Moody’s have indicated that $4 trillion in deficit reduction would be needed to secure an AAA rating.

In the financial sector, Bank of Ireland dropped 1c to 9.1c. AIB was unchanged at 10.5c. Irish Life & Permanent slipped 0.1c to 4c, while insurance group FBD Holdings closed down 18c at €6.70.