World stock markets fell Tuesday amid widening fears that a US plan to rescue financial companies from bad mortgage debt would do little to prevent a world economic slowdown. By late afternoon in Europe, Britain's FTSE 100 had dived 2.22 percent to 5,119.89, Germany's DAX tumbled 0.47 percent to 6,078.77, and France's CAC-40 slid 1.75 percent to 4,149.75. In Dublin, the financials-heavy Irish Stock Exchange plummeted 8 percent to 3,659, a nearly 12-year low. Ireland's stock market has lost more than 60 percent of its value and its bellwether bank stocks have lost roughly two-thirds of their market capitalization over the past 12 months. In Asia, Hong Kong shares led the region's declines, with the blue-chip Hang Seng Index losing 3.9 percent to 18,872.85 points after two sessions of solid gains. In China, the benchmark Shanghai Composite Index declined 1.56 percent to 2,201.51. Benchmarks in Australia and Singapore also were down sharply. In New York, in afternoon trading, the Dow fell 104.81, or 0.95 percent, to 10,910.88 after having risen more than 125 points in the early going. Broader stock indicators also dropped after pushing higher at times. The Standard and amp; Poor's 500 index fell 14.17, or 1.17 percent, to 1,192.92, and the Nasdaq composite index fell 16.20, or 0.74 percent, to 2,162.78. Investors were skittish after the Dow Jones tumbled 372.75 points, or 3.27 percent, overnight to 11,015.69, as Wall Street grew nervous about the government's plan to prop up the financial sector. Worries that the $700 billion plan wouldn't be enough to forestall a recession in the US - a vital export market for Asia - weighed on the region's investors, analysts said. “Even if it does get approved, will this stabilize the financial markets? Will this be able to prevent the economy from further deteriorating? Investors aren't sure. We could face more tough times ahead,” said Ernie Hon of ICEA Securities in Hong Kong. Meanwhile, oil prices fell below $107 a barrel as traders cashed in profits a day after crude rocketed to its biggest one-day gain ever – an epic rally apparently triggered in part by a technical fluke. It was crude's first down session in five days. Light, sweet crude for November delivery fell $2.73 to $106.64 in midday trading on the New York Mercantile Exchange. The contract jumped $6.62 to settle at $109.37 on Monday. In London, November Brent crude fell $2.04 to $104 on the ICE Futures exchange.
