European stock markets have lost some of the gains they made at the start of the week. London’s FTSE and France’s CAC 40 both fell around three percent, while Germany’s DAX was down well over 2 points at midday CET.

The losses reflect fears that global government action to rescue the banking sector will not be enough to stave off recession in the wider economy.

Asian markets also enjoyed a massive bounce at the start of the week with governments pledging to follow the plan to support inter-bank lending. However, low earnings estimates pushed the Hang Seng down nearly three percent at the close in Hong Kong, although Tokyo’s Nikkei did gain just over one percentage point.

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