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Europe stocks slide as rally sputters out; IBEX 35 down 2.98%

Published 05/11/2010, 04:29 AM
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Investing.com – European stocks slid on Tuesday as their recent rally sputtered out, amid doubts over a massive rescue package agreed by European leaders to combat the debt crisis that has engulfed the euro zone.

During early European trade, Germany's DAX was down 1.13%; the EURO STOXX 50 shed 1.54%; France’s CAC 40 was down 1.65% and Britain's FTSE 100 slipped 1.33%.

Spain's IBEX 35 slumped 2.98% on fears the cash-strapped country may yet still suffer Greece's fate.

Miners were among the worst performers, with BHP Billiton dropping 1.84% and Xstrata shedding 3.71%.

The central component of the European aid package, which was announced on Monday, was a promise by EU nations to back EUR 440 billion in new loans to bail out heavily Europe's indebted economies. Investors on Tuesday questioned the wisdom of solving the region's debt crisis by taking on more debt.

The outlook for U.S. equity markets was also dim: Dow Jones Industrial Average futures indicated a fall of 0.82%, S&P 500 futures pointed to a decline of 0.98% and Nasdaq 100 futures indicated a drop of 0.9%.

Later in the day, the U.S. Census Bureau was set to publish data on wholesale inventories, a signal of future business spending. Also Tuesday, Britain's statistic's agency was set to release a key monthly report on manufacturing production, a leading indicator of economic health.

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