WITH European stock markets tumbling in anticipation of a possible interest rate rise by the Fed the Irish market also fell but dealers said there was good overseas demand at the closing levels.

The biggest losses were notched up by the financials, some of which had reached levels that were difficult to justify, said one dealer.

Bank of Ireland had reached a level where it was trading at three times book value and one dealer said he was not surprised to see the share move back. Yesterday, Bank of Ireland was 10p lower on 740p, while AIB closed down 5p to 485p as Dauphin shareholders gave their approval to AIB's £840 million acquisition of the US bank.

Among the industrials, CRH lost 10p to 660p in thin trading while Smurfit continued to drift back after its recent burst, closing down 4p on 179p. Independent was unchanged at 330p ahead of today's annual general meeting and despite further selling of shares by the deputy chairman, Mr John Meagher. Fyffes, which dealt to the tune of over four million shares on Monday, was 1p firmer on 95p.

Greencore jumped 10p to 335p on reports that the strike in the two sugar factories was over. There was little reaction to the 1p cut in the April milk price by Golden Vale and Waterford, with most in the market taking the view that more aggressive action on milk prices is required.

Gilts were marginally firmer although volume was thin ahead of the Fed announcement. There was an unenthusiastic response from the market to the £100 million auction of 2015 stock, which the £100 million on offer covered only 1.5 times.