European Markets Slide as US Rescue Talks Stall

The lack of resolution in Washington sends shudders around the globe
By Clay Dillow,  Newser Staff
Posted Sep 26, 2008 7:14 AM CDT
A pedestrian passes a display screen showing the FTSE financial index on a street in London, Tuesday, Sept. 23, 2008.    (AP Photo)
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(Newser) – European markets swooned on news of the US bailout troubles and the failure of Washington Mutual, the Wall Street Journal reports. The Dow Jones Stoxx 600 fell 1.5%, Germany’s DAX index slipped 1.4%, and the UK’s FTSE 100 and France’s CAC-40 each shed 1.3%. In Asia, Japan’s Nikkei index lost 0.9%.

Even as the Federal Reserve increased the amount it can inject into markets abroad to $290 billion, uncertainty about the US bailout unsettled markets. Dutch-Belgian finance house Fortis led the dive, dipping 14% amid rumors of liquidity problems. Financial stocks took the worst pounding as UK’s Lloyds fell 4%, Swiss bank UBS was down 3%, and French bank Natixis slumped 4%.