World stocks tumble after US move

THE ISEQ started the new week with another major fall, down 88.49 to 2,417.99, as worries about the US debt-rating cut sent world stocks tumbling to near 11-month lows, overshadowing relief that the European Central Bank was buying bonds of eurozone strugglers Italy and Spain.

The euro also fell sharply as fears that the buying of Spanish and Italian debt would not stem the spreading debt crisis.

In the financial sector, Bank of Ireland was unchanged at 8.6c. AIB gained 0.9c to 6.9c. Irish Life & Permanent improved 0.6c to 4c, while insurance group FBD Holdings weakened 14.6c to €6.60.