However, a growing number of experts at home and abroad are starting to question that regardless of any slowdown facing the world economy, the scale of the stock market rout since the start of the year was not justified.
The rout for European banks spread to Société Générale amid growing concern that central banks are powerless to stem a slowdown in the global economy.
A slide in energy producers deepened as oil fell further.
In his market commentary, IG analyst Alastair McCraig said markets “were going crazy, as fear trumps analysis.”
Financial stocks were under pressure, including Deutsche and Société Générale.
And with Commerzbank due to post its figures later today “things could still get worse before they get better”, said Mr McCraig.
Philip O’Sullivan, chief economist at Investec Ireland, said the rout “had been overdone”.
Mr O’Sullivan said there were pressures facing the world economy, but added that only last month the IMF had forecast that the world economy would expand this year and in 2017.
In Dublin, Bank of Ireland fell by 0.4% to around 26 cent and CRH shed almost 4%.
“It’s hard to remain bullish when you get washed away with every wave every day,” said Patrick Spencer, equities vice chairman at Robert W Baird.
“There’s plenty of capital around but also a lot of fear. It’s human emotion here.”
European shares have dropped 17% this year and reached their lowest levels since October 2013 on February 9, before rebounding on Wednesday 1.9%.
This week alone, Europe’s Stoxx 600 has lost 6.9%, heading for its biggest plunge since 2011.
With a valuation of 13.4 times estimated profits, the gauge trades at a more than one-year low relative to the Standard & Poor’s 500 Index.
Its multiple was above 17 last April. At least five of the 10 worst-performing equity gauges are from western Europe, with Germany’s Dax down 19% in 2016 and Italy’s Ftse MIB Index sinking 26%.
A measure of volatility expectations for the region’s stocks jumped to its highest level since August.
While all industry groups have suffered, banks have been hit the hardest — they’ve plunged 29% this year amid disappointing earnings results and worries over bad loans and creditworthiness.
They extended their losses yesterday, falling 6.3% as a group, the most since 2011.
Société Générale tumbled 13% after reporting that quarterly profit missed estimates as earnings at the investment bank fell and it set aside provisions for potential legal costs.
While Italian and Greek lenders had notable losses, Deutsche Bank and Credit Suisse dropped more than 6%, at or near a record low.
With a 5.1% decline, Standard Chartered was at its lowest price since 1998. Rio Tinto fell 3.4% as it scrapped its progressive dividend policy.
Among other companies moving after earnings, Zurich Insurance dropped 2.7% after posting a loss following damage claims ranging from the Tianjin disaster in China to storms in Britain and here.
Adidas bucked the trend, rising 2.3% after increasing its sales and earnings outlook.
The natural resources sector is reeling and the rout shows no sign of slowing https://t.co/onLgwn0CDx pic.twitter.com/1AzMNdkSgf
— Financial Times (@FT) February 11, 2016