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European Shares Set to Track Asia Sharply Lower

European stocks were set for hefty falls on Tuesday, financial bookmakers said, tracking steep falls in Asian and U.S. markets as investors worried that the top two U.S. mortgage providers would have to raise even more capital.

Financial bookmakers, or spreadbetters, in London saw Britain's FTSE 100 falling 103-108 points, or as much as 2 percent, Germany's DAX down 100-114 points, or 1.8 percent, and France's CAC-40 down 70-77 points, or 1.8 percent.

On Wall Street the Dow Jones Industrial Average shed 0.8 percent Monday, while Japan's Nikkei 225 Average was over 2 percent lower in the afternoon session, after shares in mortgage providers Fannie Mae and Freddie Mac dropped sharply.

The pan-European FTSEurofirst 300 index ended the previous session up 1.3 percent following a recent bout of hefty losses.