Stock markets around the world fell Friday as doubts grew about the ability of political leaders to confront the broadening economic slowdown.
European markets were particularly rattled by reports that the chief economist at the European Central Bank is resigning, allegedly due to tensions over the bank's handling of an emergency bond-buying program.
In the United States, investors appeared to be disappointed by heavily anticipated speeches Thursday from President Obama and Federal Reserve chief Ben Bernanke.
The Dow Jones industrial average was recently down 200.07 points, or 1.8%, to 11,095.74 in early trading.
Leading indexes were down even more sharply in Europe, falling 3.2% in Germany and 3.1% in France.
The declines mark the second day of falling prices and have wiped out the gains made earlier in the week.
On Thursday night, Obama presented a $447-billion program to cut taxes and spend on infrastructure, but it was immediately met with questions about whether it was substantial enough, or stood a chance of passing the Republican-led House of Representatives.
In Europe, the central bank has been buying up the debt of Greek and Italy in an effort to prop up those struggling economies and provide more time for reform. But the program reportedly led to the resignation Friday morning of bank executive board member Juergen Stark, who is considered the second most influential member of the board.
Later on Friday, the top finance officials from the G7 are set to meet to discuss measures that could help alleviate the global slowdown.
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-- Nathaniel Popper in New York
Twitter.com/nathanielpopper
Photo credit: Spencer Platt / Getty Images
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