European stock markets are expected to remain under extreme pressure today as investors rush to limit their exposure to equities in advance of a possible conflict in Iraq.
More than €1.3 billion was wiped off Irish shares in nervous selling yesterday amid fears over the impact a conflict would have on the global economy.
The sell-off came across the board, with early losses being sustained in afternoon trading as the report of the chief UN weapons inspector, Dr Hans Blix, offered little hope that conflict would be averted.
All the major global markets were dragged down in the general gloom, with London's FTSE 100 hitting its lowest level since late 1995. In New York, the Dow Jones Industrial Average closed down 1.74 per cent last night.
"What markets need is for something to happen, whatever that something might be," said Mr Dermot O'Brien, chief economist with NCB.
The currency markets also fell victim to pre-war jitters, with the dollar plunging to a new three-year low against the euro.
In Dublin, the main financial stocks were among the worst-hit as the market fell, with AIB and Bank of Ireland both ending the day down about 3 per cent.
Ryanair also suffered badly, shedding 5.1 per cent in line with negative pre-war sentiment on airline stocks.
