The Dublin market was lower this afternoon as banking stocks remained under pressure.
Irish Life & Permanent warned today that pre-tax operating profits for the year are likely to be lower than forecasted although the overall statement was not as bad as some analysts had feared.
However, brokers noted with concern the short-term investment variance of €170 million which was higher than anticipated and said this could lead to net asset values being marked down.
Despite recovering slightly after the publication of the report, Irish Life & Permanent shares were 1.5 per cent lower at €8.61, having earlier traded at €8.35.
Other financial stocks lost ground today.
Bank of Ireland shares were 2.4 per cent lower at €6.40 having shed 6 per cent yesterday after a report from Keefe, Bruyette Woods Ltd warned of that Bank of Ireland and Anglo Irish Bank have lower Tier 1 capital - a measure of financial strength - than most European banks.
For its part, Anglo Irish Bank was off 0.6 per cent at €6.95. The biggest faller among the banking stocks was AIB, which has seen a 3.8 per cent drop to €10.34.
Also in negative territory today was food group Greencore, down 4.4 per cent to €2.80 and Ryanair; off 3.6 per cent at €3.06 on a day when oil prices eased higher.
Among the gainers today was CRH which has added 3.7 per cent, recovering recent losses.
In Europe most stocks fell on speculation that financial firms will post more losses, while slowing sales and rising costs may cut earnings at automakers, airlines and paper companies. US index futures were little changed.
UBS AG, Switzerland's biggest bank, and Deutsche Bank AG retreated as Goldman Sachs Group forecast more writedowns, while HBOS slumped after the bank said bad home loans rose.
Daimler AG and Air France-KLM Group dropped after oil climbed more than $2 a barrel yesterday, and Honda Motor Co. slipped on concern US vehicle sales may plunge.
Stora Enso Oyj declined as Merrill Lynch & Co recommended selling shares in the world's second-biggest papermaker on lower earnings prospects.