Weak consumer data depresses market

Weak consumer sentiment and retail data from the UK and euro zone sent European stock markets lower this morning and the Iseq was no exception.

At 12.37pm the Dublin market was 1.6 per cent lower at 5,869.

Banking stocks have been enduring a second difficult day, particularly those with a significant exposure to the UK market.

Anglo Irish Bank followed a fall of 7.4 per cent yesterday to reach the midway stage down 4.8 per cent at €7.40.

Fellow banking stock AIB is also in negative territory, slipping 2.35 per cent to €12.28 at 12.37pm. Irish Life and Permanent and Bank of Ireland shares were off over two per cent at €10.25 and €7.43 respectively.

Analysts said the negative sentiment towards banking stocks was based in part on concern as to the health of one of America's largest investment banks, Lehman Brothers.

With oil prices retreating again today to $1.24 a barrel, Ryanair rise 1.5 per cent  this afternoon to €2.88, adding to its 5.2 per cent rise yesterday.

European stocks dropped on speculation banks may need more capital as losses increase, while lower oil and metal prices weighed on commodity producers. US index futures fell, while shares in Asia rose.

BNP Paribas SA slipped to the lowest since March, and Societe Generale SA sank the most in two months after Fitch Ratings said the banks may have to raise additional capital as their finances weaken.

Royal Dutch Shell Plc, Europe's largest oil company, slumped to a three-week low, and mining company Anglo American fell the most in a week.

Europe's Dow Jones Stoxx 600 Index declined 1.6 per cent to 315.94, the lowest in six weeks, at 11.15am in London.

The index has dropped 21 per cent from a six-year high a year ago on concern higher inflation, record oil prices and credit-related losses approaching $400 billion will push the US into recession.