US share and bond prices ended another turbulent day slightly lower after a yo yo session which made European markets nervous. The Dow Jones index closed 15.17 down at 5,568.72.
The ISEQ Overall Index managed to gain 0.68 per cent or 15.73 points to 2,340.26 and along with other European markets is likely to continue to look to the US for direction.
The turbulence on Wall Street is hitting sentiment for the dollar, which has fallen against the deutschmark.
The US rollercoaster continued to shake market confidence. The Dow pushed 10 points higher in the first few minutes of trade but slumped 30 points within half an hour and was down 24 points at 5,560 by the close of Dublin business.
This followed Tuesday's yo yo session, which saw the index recover from an early 95 point plunge to close up 2.89.
Dublin and London stocks closed only just above their opening levels after the US weakness erased an earlier 20 point advance in the FTSE 100 and kept many institutional investors on the sidelines.
"No one's dealing at the moment. They just don't trust Wall Street," one senior dealer said. "There really isn't a lot of selling pressure, but neither are there any buyers. It is hard to make any decisions when you don't have a clue on how the Dow will finish," he added.
The FTSE 100 index ended just 0.8 higher at 3,640.3.
Traders and analysts said they expected the US markets to continue to gyrate at least until important inflation related statistics were announced at the end of the week.
US producer price data due to be released today will also be watched for signs of the recovery's strength However, most eyes will be on the Bundesbank meeting which will decide whether or not to opt for a rate cut. Most analysts accept that a cut is still a long shot", said one.
Bonds firmed after a rise in the British gilt market as well as an initial rally in US treasury bonds.
The five year Irish 8 per cent bond closed at 102.45 to yield 7.20 per cent from 7.28 per cent on Tuesday. The 10 year due 2006 closed at 99.25 to yield 7.94 per cent from 7.98 per cent a day earlier.
