PARIS: Stock markets in Europe and the United States tottered on Wednesday as clouds gathered over prospects for a sweeping US financial sector rescue plan that has sparked stiff resistance from US lawmakers.

Wall Street opened with slight gains, later plunged into the red and by mid-day was up just 0.03 per cent while prices fell in Europe after most Asian markets closed higher.

The London FTSE 100 index shed 0.79 per cent to close at 5,095.57 points, while in Paris the CAC 40 fell 0.61 per cent to 4,114.54 points. The Frankfurt Dax lost 0.26 per cent at 6,052.87 points.

US Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bennanke were heading again to Capitol Hill to appear before a House of Representatives committee after failing to win much support from sceptical Senators on Tuesday.

Despite their dire warnings of what might happen if the 700-billion-dollar bailout were not quickly approved, Congress has so far refused to sign on to the deal in its current form, unsettling markets around the globe.

Democratic lawmakers in particular are pressing for taxpayers to get a stake in troubled banks that are allowed to dump their risky mortgage-backed securities on the government.—AFP