European stocks tumble

Markets also digested disappointing results from aluminium producer Alcoa, which kicked off the US earnings season overnight.

In early European trade, London’s benchmark FTSE 100 index fell 0,51 percent to 5 368,47 points, Frankfurt’s DAX 30 dropped 0,84 percent to 5 816,80 points and in Paris the CAC 40 slid 0,55 percent to 3 135,63.
Markets dropped “as Slovakia’s government voted against expanding the European Financial Stability Facility (EFSF),” said Simon Furlong, a trader at Spreadex.

“However it is assumed that the EFSF will be approved by the end of the week as Slovakia plans another vote, minimising losses” on markets.
Slovakia’s parliament late on Tuesday blocked a plan to expand the EFSF, dealing another blow to the bloc’s leaders as they look for a solution to the crisis.

It effectively stops the expansion of the 440-billion-euro (US$600 billion) bailout fund, despite warnings from European Central Bank chief Jean-Claude Trichet that the world financial system faces systemic dangers.
Slovakia is the last of the 17 eurozone members to vote on the revamp which must be approved by all.

The vote also toppled the government of Prime Minister Iveta Radicova, who failed to secure backing from the junior coalition Freedom and Solidarity party after she turned the measure into a confidence motion. – AFP.