European stock futures sink on AIG’s troubles

PARIS, Sept 16 (Reuters) – European stock index futures sank in early trade on Tuesday, as investors fretted about U.S. insurer American International Group Inc after its debt was downgraded.

At 0605 GMT, futures for the Eurostoxx 50, Germany's DAX and the French CAC 40 were down between 1.9 percent and 2 percent.

AIG, which received a $20 billion lifeline by New York state officials, came under fresh pressure as ratings agencies downgraded the insurer's debt and the global financial sector meltdown spread.

Stocks in Europe and the United States sank on Monday, led by financials after U.S. investment bank Lehman Brothers filed for bankruptcy protection, fuelling fears the credit crisis would seriously hurt the global economy.