Shares on most of the major US stock exchanges closed up to 2.5 percent lower last night, mirroring losses on European markets yesterday, and in some case registering the largest single day fall in prices since April of last year.

Ireland's 10-year bonds ended yesterday with little change as markets reopened after the weekend's shock-developments, closing at 1.66 percent.  

Trading volumes were also up to 16 percent higher than average though commentators said some of this activity was in advance of the July 4th holiday on Friday and investors closing off half year positions in a shorter trading week.

Following sharp falls of up to 4 percent on some European markets in early trading yesterday, most made modest recoveries in later trading in what some commentators called a situation of manageable contagion regarding Greece.

The FT100 index in London closed just under 2 percent down; the German and French markets were 3.5 percent lower while the ISEQ index fell by 158 points or 2.5 percent.

The euro also recovered through the day having opened at just over 1.09 against the dollar and 70p against sterling. It closed back at just under $1.12 against the dollar and at 71p sterling.