LONDON (MarketWatch) -- European shares followed Asian stocks deep into the red on Friday, after a $14 billion U.S. auto bailout fell apart in the Senate late Thursday. Financials were pounded, with HBOS shares dropping 8.7% after a downbeat update, while HBOS's potential buyer Lloyds TSB [s; uk:lloy] fell 6.7%. Oil and gas firms also fell as crude futures retreated, while telecom equipment maker Alcatel-Lucent dropped 9.6% following an investor update. The U.K. FTSE 100 index dropped 4.1% to 4,209.49, the German DAX 30 index fell 4.4% to 4,559.56 and the French CAC-40 index slid 5% to 3,141.14.
