LONDON, Jan. 22 (UPI) -- European markets rallied, then lost ground Tuesday with one analyst declaring that a recession in the U.S. was under way.
"We have seen one of the fastest declines in equity indexes in 30 years. Markets are now pricing in a certainty of recession in the U.S.," equity analyst Ian Scott told the told the Wall Street Journal.
In Britain, the FTSE 100 Index dropped 0.3 percent. The CAC-40 Index was down 0.9 percent in France and the DAX Index was down 4 percent in Germany, after falling 7.2 percent on Monday.
As lawmakers in Washington work on an economic stimulation package, and with the Federal Reserve announcing an interest rate reduction Tuesday, one analyst reported that traders were operating, "in the fog without a clue."
European investors are worried that a recession in the U.S. could cross the Atlantic.