Iseq: 2,504 (-96) at 12.26pm: The Dublin market was 3.6 per cent lower this afternoon with all but three stocks flat or lower.

At 12.26pm the Iseq index was down 96 points at 2,504.

Market heavyweight CRH was more than 5 per cent lower at €19.40 today after US cement producer Cemex failed to lengthen maturities on its debt, resulting in a sharp fall in the company's shares.

Dublin-based brokers said this had hurt CRH but they noted that the volumes tradered in CRH stock in Dublin this morning were not very big.

The ongoing saga of how and when the publically listed Irish banks will recapitalise continues to undermine investor confidence, analysts said, noting that all financial stocks were lower today.

Anglo Irish Bank stock was 17 per cent down at 31.5 cent while Irish Life and Permanent was off 6.5 per cent at €1.50.

Bank of Ireland was 1.7 per cent lower at 93 cent while AIB dropped 3.4 per cent to €1.98.

Elan, which today said it would close two offices and cut 114 staff from its 1,700-strong workforce was off marginally at €5.36. Brokers welcomed the move which aims to free up cash for investment in its drugs pipeline.

Brokers said defiant comments by the Aer Lingus chairman in opposition to Ryanair's takeover offer had weighed on Ryanair's stock as it slid almost 5 per cent to €2.89. Aer Lingus shares were down 3 per cent to €1.45, still higher than the €1.40 a share cash offer from Ryanair.

Analysts said the European markets were awaiting US consumer confidence and retail sales data later this afternoon.