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A half-point cut in interest rates by the world's central banks has failed to halt a slide in stock markets.
After a brief rally, share prices resumed their falls this afternoon, with Dublin's ISEQ index closing down more than 7% and the FTSE in London ending down more than 5%.
The ISEQ finished down 245 points at 3,054, its lowest close since early 1997. London's FTSE closed 239 points (5.2%) lower at 4,367.
In a joint effort to stem losses coming from the financial markets crisis coordinated action has been taken by the world's central banks today.
The European Central Bank, US Federal Reserve and Bank of England all cut their key interest rates by half a percentage point today.
The ECB interest rate now stands at 3.75%, the Bank of England rate is 4.5% while the US Federal Reserve's key rate is down to 1.5%
The US Federal Reserve said it cut the rate 'in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures.'
The People's Bank of China, the Bank of Canada, the Riksbank in Sweden and the Swiss National Bank have cut interest rates by 50 basis points or 0.5%.
The Governor of Ireland's Central Bank, John Hurley, said the move was aimed at addressing the global lack of confidence in financial markets and institutions.
He said that, at a time of weakness in the Irish economy, the move should help to cut business costs and ease the repayment burden on mortgage holders.
Mr Hurley said it would also encourage investment and reduce strains on financial markets.
