The Irish stock market continued to post losses yesterday, though the extent of the declines seemed to be abating amid mixed signs from overseas.

US markets fluctuated above and below the neutral line although they were on course for their worst week in more than four years. In London the FTSE 100 ended the day marginally ahead, while in France and Germany the main indices were slightly lower.

At the close of trading yesterday, €8.2 billion had been wiped off the value of Irish shares alone in a very volatile week for global stock markets.

The Iseq index of Irish shares recorded its eighth consecutive down day, though the declines were less severe than earlier in the week. The index closed down just 0.2 per cent, after rallying in the second half of the session, bringing its loss for the week to 6.6 per cent. It is now more than 7 per cent down on the record high it hit on February 20th.

The declines, which were seen across the globe, were sparked by a sudden 9 per cent drop in Chinese markets on Monday night. Since then, most European markets have endured four straight days of declines as the uncertainty has spread into other areas.

Concerns about global economic growth, a possible recession in the US and the outlook for corporate profits are plaguing investors and cautiousness is prevailing.

According to Laurence Daly, director of investments at McAvoy and Associates in Cork, the declines in the markets were exacerbated by a sudden rush for cash earlier in the week as some highly geared investors sought to alleviate their positions.

Still, one Dublin trader said the sudden surge of activity from CFD (contract for difference) holders seen in May last year when the market took a similar hammering had not materialised this time round. He said it seemed that people were not as highly leveraged as they were at that time.

In the US yesterday, consumer sentiment figures came in below expectations, though the impact on the market was hard to call.

While the suddenness and extent of the declines took most people by surprise, many commentators had been expecting some sort of correction after global indices hit record levels last month.

Despite this week's large declines, the Iseq is still trading down where it was at the end of January.