European markets drop to three-week low amid downbeat company earnings

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Downturn in euro zone business activity also dampened the mood

Bank of Ireland rose 2.4 per cent to €9.72 as interest rates went up again in the UK, while Ryanair added 1.3 per cent, finishing at €15.75.

Rate-sensitive home builders, however, added 0.2 per cent while the real estate sector rose 1 per cent. Deutsche Lufthansa slid 5.5 per cent despite the German airline group’s upbeat forecast for travel demand, as investors worried about high costs eating into profit.

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