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

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European Markets Slide as US Rescue Talks Stall — A pedestrian passes a display screen showing the FTSE financial index on a street in London, Tuesday, Sept. 23, 2008. (AP Photo)

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%.
(More DAX stories.)

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