Stocks drifted lower yesterday as rising oil prices and a growing belief that the Iraq conflict will take longer than forecast, fuelled concerns about global economic recovery.
Cautious investors declined to make large bets as questions swirl around the length of the US-led war in Iraq.
"The issue is how long will the war take," said Mr Owen Fitzpatrick, head of the US equity group at Deutsche Bank Private Banking, which oversees $9 billion (€8.4 billion).
The blue-chip Dow Jones industrial average closed down 28.43 points, or 0.35 per cent, at 8,201.45. The broad Standard & Poor's 500 fell 1.44 points or 0.17 per cent to 868.51. The tech-laced Nasdaq Composite declined 3.21 points, or 0.23 per cent, to 1,384.24.
In Europe, oils and autos led shares lower, with the FTSE Eurotop 300 index closing down 1.8 per cent at 774.16 points in thin volume. The DJ Euro Stoxx index of leading euro-zone shares dropped 1.85 per cent to 2,132.51 points.
In Dublin, the ISEQ index finished 0.70 per cent weaker on 4,021.87, while London's FTSE 100 was off 1.69 per cent.
Investment bank Bear Stearns said investors were reintroducing a war discount into stocks that had been partly unravelled during the recent rally.
