Markets drop as crisis fears grow

The Iseq index fell 41.54 points yesterday, to close at 3,062.02.

Markets fell as investor sentiment was hit by rising Italian and Spanish bond yields and the possibility that the European debt crisis will continue to spread.

In the financial sector, the Financial Regulator has indicated in a German newspaper that over the medium term, the Irish banks will need to generate an additional €3bn-4bn in capital to meet stricter international regulations. Bank of Ireland added 0.2c to 8.9c. AIB gained 0.1c to 6.5c, while Irish Life & Permanent slipped 0.4c to 2.6c.