European markets edge downwards

European markets moved lower yesterday as investor attention shifted from company earnings season to the potential US fiscal cliff.

Negotiations continue in Washington over a deficit-cutting deal. However, in the interim, markets are seeing a minor correction as risk appetite is somewhat suppressed. The Iseq index trended lower in line with European peers and finished the day down 1.7% or 58.51 points to 3,233.32.

Irish banks were lower again as investors continued to assimilate Tuesday’s Bank of Ireland interim management statement. AIB shed 0.3c, or 5.5%, to finish at 5.1c. Bank of Ireland and Permanent TSB Group followed suit, faling to 9.2c and 2.5c respectively.

In other news, Glanbia gained 14.7c to €8.15 as Glanbia Co-Operative Society confirmed that 70% of members voted in favour of a proposed dairy processing joint venture with Glanbia PLC.