Markets fall amid Draghi’s caution

THE ISEQ index closed down 34.19 points at 2,720.95. Markets fell after cautious comments from ECB president Mario Draghi failed to boost investor confidence.

The ECB cut interest rates by 25 basis points to a record low of 1%, but stopped short of buoying up the bond markets by buying eurozone government bonds more aggressively. The Bank of England kept interest rates at 0.5%.

In the financial sector, BoI has indicated it will make a €1.5 billion fund available for first-time buyers after the mortgage interest relief changes in the budget earlier this week. Shares in the bank fell 0.4c to 8.9c. AIB gained 0.6c to 7.8c, while Irish Life & Permanent was up 0.3c at 3c.