Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.83%3.86%
15 yr fixed2.95%2.94%
5/1 ARM3.13%3.05%
30 yr refi3.95%3.98%
15 yr refi3.05%3.05%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 16,643.01 -11.76 -0.07%
Nasdaq 4,828.33 15.62 0.32%
S&P 500 1,988.87 1.21 0.06%
Treasuries 2.19 0.02 0.83%
Data as of 11:33pm ET
Company Price Change % Change
Freeport-McMoRan Inc... 10.50 0.31 3.04%
Bank of America Corp... 16.36 -0.08 -0.49%
Apple Inc 113.29 0.37 0.33%
Intel Corp 28.42 0.70 2.53%
Alcoa Inc 9.41 0.55 6.21%
Data as of Aug 28

Sections

Efforts to unionize low-wage employees of fast-food franchisees and outside contractors get lift from decision of NLRB. More

The U.S. economy has performed well this year. But there's lots of global gloom. Which will influence the Fed the most? More

You can continue to keep your two-year contract on Verizon, but the no-contract plans will save you money. More

How do you run a successful crowdfunding campaign? Indiegogo's CEO Slava Rubin offers his top tips and mistakes to avoid. More

Looking for something good on Netflix? These entertaining films will help you learn more about finance and investing. More