Iseq finishes marginally positive

European shares fell today on worries about higher global inflation as well as a weakening US jobs market, while concerns about Greek debt hit banking stocks.

Investors were also positioned cautiously ahead of Google results, which are scheduled to be released after the markets close, with traders suggesting this could impact technology and media stocks.

The pan-European FTSEurofirst 300 index of top shares closed down 0.6 per cent at 1,128.84 points after paring bigger losses.

The FTSE 100 fell 46.64 points, or 0.8 per cent, to 5,963.80, its lowest close since March 31st. The sell-off was led by Reckitt Benckiser after the company said its chief executive was retiring, and banks were weaker on renewed worries about sovereign debt levels.

The Iseq outperformed and finished the day marginally in positive territory at 2,944.68, up 0.19 per cent.

Bank of Ireland gained 3.6 per cent before lunch and was trading at €0.286 at 12.30 on the back of a reporting a better than expected pretax loss of €950 million for 2010. But any positive feeling towards the financials dissapated in the afternoon when the Department of Finance began moves to force burden sharing on the owners of subordinated debt in AIB.

Irish Life & Permanent was the biggest loser on the day, shedding 5.7 per cent to close on €0.148, Bank of Ireland held its own closing at €0.279, up 1.09 per cent, while AIB was unchanged at €0.24.

There was more positive news in other sectors with bookmaker Paddy Power getting close to its historic high. It added just over 3 per cent over the course of the session and finished on €32.19.

Smurfit Kappa attracted a lot of interest and is on course to trade 2.5 times its normal weekly volume. The packaging group closed at €9.10, down 2.1 per cent.

Despite Minister for Transport Leo Varadkar confirming discussions between the Government and airlines over abolishing the €3 air travel tax are under way, there was little move in the stocks. Aer Lingus was unchanged at €0.800, while Ryanair was off slightly at €3.42.

Of the small caps Donegal Creameries was up 3 per cent to €4.10 after announcing a 14 per cent jump in operating profit in 2010.