ISEQ falls 4%, in line with all major markets

THE ISEQ index of Irish shares fell over 4% yesterday, a pattern consistent across all major international stock exchanges in light of Greece’s decision to hold a referendum on its latest bailout offer.

Large scale selloffs were the order of the day among investors yesterday as the hopes of a widespread solution to the eurozone debt crisis — emerging from last week’s second EU summit in Brussels — gave way to concerns over the knock-on effects of a potential Greek default.

News that acceptance of Greece’s second $130 billion bailout/50% debt writedown offer from Europe will now depend on a public vote resulted in falls of about 5% for Europe’s major bourses.