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Stocks in Europe and Asia drop

Stocks in Europe and Asian dropped on Tuesday on concern that a US plan to buy $700 billion of bank assets will not prevent a global recession.

  • Bloomberg
  • Published: 13:24 September 23, 2008
  • Gulf News

  • The gauge has now erased almost half of an 8.3 per cent rally on September 19, when the US government announced plans to stem credit-related losses.
  • Image Credit: Gulf News Archive

France: Stocks in Europe and Asian dropped on Tuesday on concern that a US plan to buy $700 billion of bank assets will not prevent a global recession.

Barclays Plc, the UK's third-biggest bank, fell 2.1 per cent and Australia's Macquarie Group Ltd. retreated 4.5 per cent.

Vedanta Resources Plc, India's largest zinc producer, and Rio Tinto Group slid more than 3 per cent on lower metals prices.

Marks & Spencer Group Plc sank 3.2 per cent after Deutsche Bank AG cut its recommendation on shares of the UK's biggest clothing retailer.

Europe's Dow Jones Stoxx 600 Index slipped for a second day, falling 1.4 per cent to 268.63 as of 9:20am in London.

The gauge has now erased almost half of an 8.3 per cent rally on September 19, when the US government announced plans to stem credit-related losses.

The MSCI Asia Pacific Index retreated 0.5 per cent on Tuesday, snapping a two-day advance. Futures on the Standard & Poor's 500 Index added 0.2 per cent.

"The tough intervention avoided an international crash, but all of the problems aren't resolved," said Matthieu Giuliani, a fund manager at Palatine Asset Management in Paris.

"The economy is fragile. The fundamental problems such as the credit bubble are still there. Confidence hasn't returned to the market," Giuliani said.

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