MADRID (MarketWatch) -- European stock markets extended losses on Wednesday as the euro dropped below the key $1.30 level against the U.S. dollar. In recent trades, the currency EURUSD -0.31% fell 0.4% to $1.29850. The Stoxx Europe 600 index XX:SXXP -0.72% fell 1% to 234.96, while the French CAC 40 index FR:PX1 -1.40% fell 1.8% to 3,022.12 and the German DAX 30 index DX:DAX -0.92% fell 1.3% to 5,697.68. Europe stocks had been down much of the morning on disappointment over inaction by the Federal Reserve the prior day, while sovereign debt worries lingered as Italy had to pay euro-era highs yields at an auction. German Chancellor Angela Merkel is also due to address the lower house of parliament on Wednesday.
