Stocks Drop Over Europe’s Debt Plan

World stock markets sank Tuesday as new concerns emerged about the viability of a much-heralded plan to contain Europe’s debt crisis.

Benchmark oil fell below $92 a barrel. The dollar surged against the euro, and it rose slightly against the yen, a day after jumping about 5 percent following Japan’s move to buy dollars and sell the strong yen to protect its exporters.

European shares slid in early trading. Britain’s FTSE 100 tumbled 2.6 percent to 5,401.98 and Germany’s DAX dived 3.8 percent to 5,910.15. France’s CAC-40 lost 3.3 percent to 3,139.55.

Wall Street was headed for a second day of losses, with Dow Jones industrial futures dropping 1.1 percent and S&P futures recoiling 1.6 percent.

Stock markets in Asia didn’t fare much better. Japan’s Nikkei 225 index retreated 1.7 percent to close at 8,835.53. Hong Kong’s Hang Seng lost 2.5 percent to 19,369.96 and Australia’s S&P/ASX 200 shed 1.5 percent to 4,232.90. Benchmarks in Singapore, India, Indonesia and Thailand were also down.

South Korea’s Kospi gained marginally to 1,909.63 and China’s Shanghai Composite Index added 0.1 percent to 2,470.02.

Markets were on edge as events in Europe undermined optimism about the debt crisis deal that European leaders agreed last week to shore up the continent’s banks and prevent Greece from defaulting, according to Associated Press Report.