European Shares Set to Join Global Selloff

European stocks were seen falling sharply on Tuesday, financial bookmakers said, tracking hefty overnight falls in Asian and U.S. markets as concerns over the health of the financial sector persisted.

Financial bookmakers expected Britain's FTSE 100 to open down 41-46 points, or as much as 0.9 percent, Germany's DAX down 55-61 points, or 1 percent, and France's CAC down 42-46 points, or 1.1 percent.

The pan-European FTSEurofirst index added 0.7 percent in the previous session.

U.S. stocks fell on Monday as worry about the health of the U.S. banking sector after Friday's collapse of IndyMac outweighed earlier optimism over the government's plan to stabilise Fannie Mae and Freddie Mac . Asian stocks hit two-year lows on Tuesday.