Nervous Irish market falls over 2%

Irish shares have fallen this morning, depressed by poor results from retailer Marks & Spencer and nervousness ahead of tomorrow's interest rate decision by the European Central Bank.

At noon the Iseq index was down over 2 per cent at 6746.80, having spent most of the morning in negative territory.

No sector was immune from the fall, but, as has become the norm, financial stocks bore the brunt. Anglo Irish Bank has shed 40 cent or 3.90 per cent to €9.87, on the back of a 2.5 per cent fall yesterday.

Bank of Ireland is also in the red, down 23 cent or 2.20 per cent to €10.25, while Irish Life & Permanent shares dropped 15 cents or 1.3 per cent to €11.20.

Ryanair shares, which have had a tough start to the new year, lost further ground today, dropping over 5 per cent to €3.72. The shares have now lost over 15 per cent since the start of 2008. Ryanair is struggling with falling British consumer sentiment and the rally of oil prices.

Aer Lingus shares are also down today, although not to the same extent. At noon they were off just under 2 per cent at €2.06. Yesterday, Aer Lingus reported a 15 per cent rise in December passenger numbers on the back of new aircraft and additional routes.

The day's biggest faller was house-builder Abbey, which has seen over 9 per cent wiped off the value of its shares this morning, falling to €5.28.

Building suppliers and DIY group Grafton gave up much of yesterday's gains, falling 3.4 per cent to €5.18.

Paddy Power, which may already feel a tad foolish for paying out €50,000 on Barack Obama to be the successful Democratic nominee, saw its shares drop almost 6 per cent today to €19.80

Shares in market heavyweight CRH were down over 3 per cent at €23.3.

In Britain UK stocks fell, led by retailers, after Marks & Spencer Group, Britain's biggest clothing seller, reported a decline in same-store sales for the first time in 30 months.

BP, Europe's second-largest oil company, dropped the most in almost five years in London after Merrill Lynch & Co cut its fourth-quarter net income estimate by 25 per cent.

The FTSE 100 retreated 59.8, or 0.9 per cent, to 6,296.7 at 11.29am.