Tuesday, August 16, 2011

Sarkozy, Merkel plan fails to inspire Wall Street

US stocks fell on Tuesday after three days of gains when a meeting between the heads of France and Germany failed to quell fears about euro zone leaders' ability to contain the region's sovereign debt woes.

The Dow Jones industrial average dropped 76.97 points, or 0.67 percent, at 11,405.93, while the Standard & Poor's 500 Index declined 11.73 points, or 0.97 percent, at 1,192.76, and the Nasdaq Composite Index fell 31.75 points, or 1.24 percent, at 2,523.45.

European stocks fell, halting a recovery rally started last week, as investors fretted about a tepid reading of German GDP growth ahead of talks between German and French leaders on the euro zone debt crisis.

The FTSEurofirst 300 index of top European shares were down 0.7 percent at 962.64 points.

Japanese stocks edged higher after Google Inc's plans to buy phone maker Motorola Mobility triggered buying of some technology stocks, though worries about the health of the US economy and a strong yen were seen limiting further gains.

The Nikkei has shed 7.4 percent since the beginning of August and is 5.6 percent below its 25-day moving average at 9,655.73.