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||3.83%||3.86%|
|15 yr fixed||3.02%||3.04%|
|30 yr refi||3.81%||3.82%|
|15 yr refi||3.02%||3.03%|
Today's featured rates:
Nike is opening up shop on Amazon.com and the company plans "big shifts" over the coming year. More
The Congressional Budget Office narrows its projection for when Treasury will run short on money if Congress doesn't raise or suspend the country's debt ceiling. More
Apple is teaming up with medical device maker Cochlear Limited to allow cochlear implant users to stream sound right from their iOS devices. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
It's never too late to improve your chance of having a more secure retirement, but you'll need to put retirement planning at the very top of your list of financial priorities. More