Global stocks pull back
Most Asian markets end lower, as investors resume worrying about the global economy.
NEW YORK (CNNMoney.com) -- World stock markets pulled back Wednesday as Investors shifted their focus to lingering economic problems in the global economy after the United States began implementing its multi-billion dollar bank bailout plan.
European markets slumped in early trading, giving back some of Tuesday's gains. London's FTSE-100 and Frankfurt's DAX fell 1.5%, while Paris' CAC-40 lost 1.2%.
Most Asian-Pacific markets ended lower. Australia's All Ordinaries index finished down 0.9% and Hong Kong's Hang Seng slumped 3.4%. The Taiwan Weighted index fell less than 1%.
The story was similar in Seoul, where the KOSPI index fell 2%. Singapore's Straits Times index was off 3% and the BSE SENSEX in Mumbai slipped 4%.
Japan's Nikkei index ended up 1.1% after a record 14% surge the day before.
U.S. stock futures pointed to a lower open on Wall Street.
In the United States on Tuesday, major indexes finished close to break even, despite more details of the government plan to make direct investment in U.S. banks. The prospects for the move had sent stocks soaring worldwide a day earlier.
As a start to the bailout plan, the U.S. Treasury will pump $250 billion into financial institutions. Nine of the nation's largest banks have already agreed to take the capital and in return will give preferred shares to taxpayers and accept limits on executive pay. Half of the money, or $125 billion, will go to the nine large banks.
The government also announced insurance on all deposits in non-interest bearing bank accounts, a move that should calm businesses worried because their payroll and checking accounts may exceed the limits backed by the Federal Deposit Insurance Corp.
And the FDIC will also back most new bank debt - a change designed to spur more lending between banks.
The moves did, however, help lift shares in big banks, which have been battered throughout the year. Shares of Citigroup (C, Fortune 500), Bank of America (BAC, Fortune 500), Wells Fargo (WFC, Fortune 500) and Merrill Lynch (MER, Fortune 500) all soared more than 10% Tuesday.