Leading shares fell heavily again today with technology and telecoms stocks hit hard by gloomy news from US counterparts, and Wall Street looking set for a torrid session.
By 1.35 p.m. the blue-chip FTSE 100 index was down 61 points, or 1.3 per cent, at 4,641, having skidded to 4,616.7 earlier. The fall takes the index nearer Friday's low of 4,565.4 - its worst intraday level since September.
In Dublin the ISEQ is down 62 points or 1.2 per cent at 4,901 in early afternoon trade. Among the fallers were Bank of Ireland down 12 cents at €12.70 and Ryanair which fell 6 per cent to €6.31.
Microchip designer ARM Holdings led techs lower with an 8.5 per cent drop. Dealers said an earnings warnings from Apple Computer and chip-maker Advanced Micro Devices hit confidence, while software maker Oracle issued a gloomy outlook.
Banking and drug stocks each wiped 16 points from the index, with airlines British Airways and easyJet also slipping after they cancelled flights due to a European air traffic controllers strike.
Telecoms company Cable & Wireless lost 4.2 per cent, which dealers also blamed on bad news from the US, after telecoms equipment maker Ciena said current quarter results would be weaker than forecast.
Signals that recovery is still some way off spread to other stocks in the sector with mobile operator Vodafone Group down 3 per cent.