Stocks, euro fall before EU summit

World stocks and the euro stumbled on Tuesday after the cancellation of a meeting of European finance ministers raised doubts that an upcoming summit will result in a clear plan to rein in Europe's debt crisis.

US stocks fell on doubts European leaders can agree on a plan to end the euro zone debt crisis, while major corporations disappointed investors with their outlooks.

The Dow Jones industrial average lost 205.18 points, or 1.72 percent, to 11,708.44. The Standard & Poor's 500 Index fell 24.96 points, or 1.99 percent, to 1,229.23. The Nasdaq Composite Index dropped 61.02 points, or 2.26 percent, to 2,638.42.

European shares ended lower, after hitting 11-week highs earlier in the day, on concerns that a European Union summit scheduled for Wednesday might not come up with a bold and comprehensive plan to tackle the region's debt crisis.

The FTSEurofirst 300 index of top European shares ended 0.7 percent lower at 982.57 after rising to an 11-week high of 993.29 earlier.

The Nikkei share average dropped today, reversing early gains as hopes for progress in Europe's debt crisis gave way to caution on the domestic front as Japan's corporate earnings season kicked off.

The Nikkei average fell 0.9 percent to 8,762.31 , while the broader Topix shed 1 percent to 747.70.