World markets drop ahead of bailout details
3 minutes ago
By PAN PYLAS
AP Business Writer
(AP:LONDON) European and U.S. stock markets fell Tuesday as the Obama administration outlined a new bank rescue that could mobilize in excess of $1 trillion in public and private support to get the frozen credit markets working again.
The markets seemed a bit skeptical about the plan, at least until further details are unveiled.
After opening modestly higher, the Dow Jones industrial average fell 109.36 points, or 1.3 percent, to 8,161.51, while the broader Standard & Poor's 500 index dropped 13.14 points, or 1.5 percent to 856.75.
Meanwhile in Europe, the FTSE 100 index of leading British shares fell 53.68 points, or 1.3 percent, to 4,253.93, while Germany's DAX was 84.48 points, or 1.8 percent, to 4,582.34. The CAC-40 index in France fell 26.73 points, or 0.9 percent, lower at 3,108.14.