World markets drop amid doubts about EU rescue



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." To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.53%4.42%
15 yr fixed3.96%3.88%
5/1 ARM4.37%4.30%
30 yr refi4.53%4.42%
15 yr refi3.94%3.86%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 25,013.29 298.20 1.21%
Nasdaq 7,394.04 39.70 0.54%
S&P 500 2,733.01 20.04 0.74%
Treasuries 3.06 0.00 0.00%
Data as of 4:50am ET
Company Price Change % Change
Fifth Third Bancorp 30.90 -2.66 -7.93%
Cisco Systems Inc 43.75 0.54 1.25%
Comcast Corp 32.34 -0.38 -1.16%
Pfizer Inc 35.80 0.16 0.45%
Kroger Co 24.77 -0.12 -0.48%
Data as of May 21

Sections