Dublin's ISEQ index plunged 4.9% today, amid a slump in Elan shares and as European markets fell on renewed fears of rising interest rates after Federal Reserve Chairman Ben Bernanke pledged to remain vigilant on inflation. Over €3.5 billion was wiped off the value of Irish shares today.
Elan shares closed almost 19% this evening, after US health officials ruled that its multiple sclerosis drug Tysabri could return to the market, but with several conditions.
The drug had been withdrawn following the deaths of two patients involved in trials of the drug from a rare brain disease.
The conditions attached to the return of the treatment include a change in the labelling accompanying the product to include warnings about the risks, continuing safety assessments and an educational programme designed to inform patients and doctors about the product.
Meanwhile, European investors are worried that the European Central Bank might raise interest rates by 0.5 percentage points on Thursday instead of by 0.25 percentage points as expected by many economists after Bernanke's comments.
Dublin's ISEQ slumped 376 points to close at 7,303 this evening. London's FTSE closed 1.6% lower at 5,670, while the Paris CAC lost 2.4% and the Frankfurt DAX was down 2.11%.
Meanwhile, US shares slumped for a second day in a row today, after a failed rally gave way to further selling, with the market pressured by fears of rising inflation even as the US economy is slowing.
