Markets recover after downgrades

THE ISEQ index gained 6.52 points yesterday to close at 2,935.96. Markets recovered somewhat in the afternoon after multiple sovereign downgrades by Standard & Poor’s threatened to aggravate the eurozone’s debt crisis.

Investors are now worried the eurozone’s bailout fund, EFSF, might lose its AAA rating with S&P, reducing its ability to help countries in distress.

In the financial sector, Bank of Ireland added 0.2c to 9.2c. AIB was unchanged at 6c. Irish Life & Permanent was 0.1c better at 3c, while insurance group FBD Holdings advanced 5c to 7.15.