LONDON (CNNMoney.com) -- Stocks in Europe and Asia dropped Tuesday, as doubts about whether a nearly $1 trillion rescue plan for Europe would work weighed on investors.
In morning trading, the CAC 40 in France was down 2%, Britain's FTSE 100 was 1.6% lower and Germany's DAX dropped 1.2%.
Asian shares finished the session lower, with Hong Kong's Hang Seng index dropping 1.7% and Japan's benchmark Nikkei index tumbling 1.1%.
The selloff comes a day after markets around the world surged on news that European Union leaders had reached agreement on a dramatic bailout package aimed at containing debt problems in the region.
Stocks skyrocketed Monday as the rescue package valued at close to $1 trillion over three years boosted optimism.
U.S. stocks turned in their best day in 14 months. European stocks rose sharply, with stocks in France surging nearly 10%.
But the renewed confidence sparked by the bailout plan started to fade Tuesday, as investors worried about whether the massive aid package would end Europe's debt woes.
On Tuesday, the International Monetary Fund predicted that the pace of economic growth in Europe would be weak in 2010 and 2011 and said the costs of crisis interventions were a "growing concern."
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.90%||3.90%|
|15 yr fixed||3.02%||3.07%|
|30 yr refi||3.97%||3.96%|
|15 yr refi||3.07%||3.12%|
Today's featured rates:
Ed Gilligan spent his entire 35-year career with American Express, starting as an intern ad rising to one of the highest executive posts at the bank. More
The U.S. economy lost ground in the first quarter, but it is already showing signs of life. More
Lyn Ulbricht, mother of Silk Road founder Ross Ulbricht, says he was sentenced to life to set an example. More
A generous patron left a $2,000 tip earlier this week at a D.C. restaurant. More