Markets fall as EU treaty hopes wane

Markets around the world closed down overnight as further signs European leaders will fail to agree a new treaty emerged.

Shares in Europe, the US, and Asia all declined as investors continued to fear a resolution in Europe may not be achieved.

The Dow closed down 0.6% at 11,954 points, while the S&P 500 shed 0.9% to close at 1,225 points.

Meanwhile in Europe the German Dax finished down marginally, at 5,774, having shed 0.2%, and the French Cac was off 0.4% at 3,078.

In Asia both the Nikkei and the Hang Seng also saw minor losses.

A number of European leaders have warned of difficulties pushing a far-reaching economic pact through their national parliaments.

While the UK has been left out in the cold so far, a number of other eurozone countries may be forced to follow its lead after warning the precise legal text would determine whether they could sign up to the treaty or not.

According to the FT, officials in several of those countries said their most pressing concern was whether the new rules giving Brussels powers to police national budgets would be binding only to eurozone governments or to all signatories.

Elsewhere in markets, the UK bucked the trend yesterday, gaining more than 1% to close at 5,490 points.