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 fixed3.56%3.66%
15 yr fixed2.76%2.72%
5/1 ARM2.94%2.82%
30 yr refi3.55%3.67%
15 yr refi2.80%2.78%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,400.75 -610.32 -3.39%
Nasdaq 4,707.98 -202.06 -4.12%
S&P 500 2,037.41 -75.91 -3.59%
Treasuries 1.58 -0.16 -9.20%
Data as of 12:42pm ET
Company Price Change % Change
Bank of America Corp... 13.00 -1.04 -7.41%
Microsoft Corp 49.83 -2.08 -4.01%
Ford Motor Co 12.52 -0.88 -6.57%
General Electric Co 29.82 -1.37 -4.39%
Micron Technology In... 13.21 -0.84 -5.98%
Data as of Jun 24

Sections

Barnes and Noble announced plans to start selling alcohol in some of its stores. And shares of the bookstore chain rallied on the news while the rest of the market was down on Brexit fears. More

The U.K. voted to leave the European Union on Thursday. The vote could affect Americans in a litany of ways. More

Startup Spark examined the effects that political candidates had on the human brain and nervous system using a device called BrainWave. Here's what it found. More