Stocks in Europe, Asia tumble
World markets drop as recession worries and financial sector woes pressure investors.
LONDON (CNNMoney.com) -- Stocks around the world fell Tuesday as economic gloom hung over investors.
European stocks were in negative territory in morning trading. Britain's FTSE 100, the CAC-40 in France and Germany's DAX all fell about 1.7%.
U.S. futures, which give an indication of how Wall Street will open when trading begins in New York, were lower.
In Asia, major markets tumbled. The Nikkei in Japan shed 2.3%, while Hong Kong's Hang Seng index sank 4.5%.
The losses come on the heels of a rough day on Wall Street. The Dow Jones industrial average lost 223 points, or 2.6%, Monday. The Standard & Poor's 500 index fell 2.6% and the Nasdaq composite lost 2.3%.
Fears of recession have pressured stock markets worldwide. Japan became the latest major economy to announce it was in recession - its first since 2001 - on Monday.
Financial sector woes also are weighing on investors. Major Wall Street firms remain hobbled by the credit crisis. Citigroup (C, Fortune 500) said Monday it was cutting over 50,000 jobs in its latest effort to trim costs amid the credit crisis and economic slowdown.
Investors are also awaiting the fate of a potential bailout for Detroit's Big Three automakers. Congress is debating this week whether to bail out the hard-hit industry with an additional $25 billion in support.
In the latest sign of the troubles hitting the auto industry, Ford Motor (F, Fortune 500) said Tuesday it will sell nearly two-thirds of its stake in Mazda Motor Corp. after finding several Japanese buyers.
CNN Wires contributed to this report. 
