Investing.com - Tuesday's optimism was short lived as European stocks fell across the board Wednesday, despite the European Central Bank upping its loan package to struggling banks.
After the close of European trade, the EURO STOXX 50 dropped by 0.80%, France's CAC 40 fell 0.82%, while Germany's DAX 30 gave back 0.95%. Meanwhile, in the U.K. the FTSE 100 fell 0.55%.
Mohammed El-Erian, CEO of PIMCO, the world's largest bond fund sent shivers of fear into the financial markets when he stated that he sees greater than a one in three chance that the euro zone will break up triggering another 2008 style crisis.
The ECB upped its loan package to 523 euro zone banks to EUR489billion which will be loaned at the benchmark interest rate over the term of the loan. The lending will start tomorrow.
Richard Hunter of Hargreaves Lansdown told Bloomberg, "It's another shrug of the shoulders; the underlying story hasn't changed with Europe's debt crisis. The hope is this money somehow finds its way back into sovereign debt in the New Year."
Meanwhile, an increase in borrowing costs in Italy and Spain dashed hopes that the ECB's package would solve the crisis.
SAP AG gave back 6.1% and Software AG fell 4.95 after competitor Oracle missed analysts estimates.
Holcim dropped 1.7% and Geberit gave back 1.2% during the euro zone stock sell off.
U.S. stocks followed Europe lower across the board in midday trading with the Dow Jones Industrial Average falling 0.73%, the S&P 500 off by 0.77% and the Nasdaq 100 plunging 2.07%.
Investors are awaiting U.S. jobless claims and Britain's GDP on Thursday.
After the close of European trade, the EURO STOXX 50 dropped by 0.80%, France's CAC 40 fell 0.82%, while Germany's DAX 30 gave back 0.95%. Meanwhile, in the U.K. the FTSE 100 fell 0.55%.
Mohammed El-Erian, CEO of PIMCO, the world's largest bond fund sent shivers of fear into the financial markets when he stated that he sees greater than a one in three chance that the euro zone will break up triggering another 2008 style crisis.
The ECB upped its loan package to 523 euro zone banks to EUR489billion which will be loaned at the benchmark interest rate over the term of the loan. The lending will start tomorrow.
Richard Hunter of Hargreaves Lansdown told Bloomberg, "It's another shrug of the shoulders; the underlying story hasn't changed with Europe's debt crisis. The hope is this money somehow finds its way back into sovereign debt in the New Year."
Meanwhile, an increase in borrowing costs in Italy and Spain dashed hopes that the ECB's package would solve the crisis.
SAP AG gave back 6.1% and Software AG fell 4.95 after competitor Oracle missed analysts estimates.
Holcim dropped 1.7% and Geberit gave back 1.2% during the euro zone stock sell off.
U.S. stocks followed Europe lower across the board in midday trading with the Dow Jones Industrial Average falling 0.73%, the S&P 500 off by 0.77% and the Nasdaq 100 plunging 2.07%.
Investors are awaiting U.S. jobless claims and Britain's GDP on Thursday.