Stocks: Fiscal cliff also draws Europe down

The mood could be better on the stock exchanges in Europe in Friday's trading, where investors have pushed  optimism to the side. Instead, the focus is on the major challenges that policymakers are struggling with on both sides of the Atlantic.

In Europe the debt crisis continue to pull down, while Americans' concerns is whether Democrats and Republicans can agree in due time before the fiscal tightening with the entrance to 2013.

Europe: Fall dominated

European stocks closed in red on Tuesday. Measured on the Stoxx 600-index, there was a decrease of 0.5 percent to 270.20. 441 of the index 600 shares fell. The three largest stock markets in Europe closed lower. In Britain, there was a decrease of 0.5 percent and in Germany of 0.8 percent, while shares in France fell by 0.7 percent.

Euro rescue fund with 500 billion euro is ready

Two years after the euro countries started to design a new, permanent rescue fund for their ailing economies, the fund - called ESM – is now a reality.

Economy and finance ministers from the 17 euro countries are Monday meeting in Luxembourg to founding the board of the fund, which should eventually be able to support problem countries with up to 500 billion euro.

Stocks: Profit taking in New York

The U.S. investors followed the trend in Europe and took some of their winnings home after days of sharp rises. The leading index seeped through the day and was in the red by market close.

Europe: Marginal fluctuations without actual trend

The European stock markets closed Monday with marginal losses. Investors were unsure of the direction of the market should, and risk appetite was again up for debate.

The weekend's weak economic data from China and Japan suggest a slowdown in global growth, and new initiatives from the Chinese authorities can become a reality, just as the Federal Reserve, monetary policy meeting Thursday may result in additional quantitative easing to increase growth and specifically employment.