DUBLIN REPORT: Iseq: 3,035.56 (-74.59) Settlement date: May 12thTHE ISEQ slipped below the 3,000 mark at one point on a day that saw European markets plummet as fears over sovereign risk grew.

One broker reported that it was “all red on the screens”, as the Iseq fell 2.4 per cent. “Obviously there are a lot of fears out there about Europe.”

“People were just getting out,” another trader said. “Things have had a good run, but most of that’s been given up now.”

In its morning note yesterday, Bloxhams Stockbrokers said because of “hideous” declines in US stock markets overnight – the Dow recorded the biggest intraday fall since 1987 – investor nervousness was likely to intensify, especially towards financial stocks.

Although it emerged that this precipitous drop may have been caused by a trading error, several Irish financials were hit hard.

AIB was off more than 10 per cent, or 13 cent, at €1.11, while Irish Life Permanent slid about 6 per cent to just below €2.30.

Bank of Ireland proved the outperformer in the financial sector on the day, even though it only inched ahead fractionally to €1.42.

Results issued yesterday by Smurfit Kappa were ahead of consensus expectations and showed that the packaging group has made a strong start to the year.

Nonetheless, the stock got caught up in the downward momentum that prevailed on the Irish market and by the close was off more than 5 per cent, or 38 cent, at €6.95.

The Iseq’s two heavy hitters in term of index weighting, CRH and Ryanair, were also down. The cement stock was off more than 4 per cent to €17.75, while the low-cost airline lost 3.6 per cent to close just above €3.37.

Grafton Group, which had results out on Thursday, was also down on the day, falling almost 5 per cent, or 17 cent, to €3.30.