Lower Open Likely for Markets

The stock markets overseas were none too pleased to see the talks in Congress fall apart yesterday evening, after a day in which the Dow surged on optimism that the $700 billion bailout proposal deal would be completed.

The late evening announcement that troubled thrift Washington Mutual was sold to JP Morgan for $1.9 billion -- the largest bank to fail in history -- through a deal arranged by the FDIC, served as a reminder that the U.S. financial system remains in deep trouble.

In Asia, the markets took a big hit, with the Hong Kong Hang Seng dropping 252 points, or 1.3 percent, and the Nikkei dropping 113 points, or .9 percent. In Europe, the DJ Stoxx index is down 46 points, or 1.6 percent.

We'll be watching the U.S. markets open later this morning here on the Live Coverage blog. Check back here for financial news updates and progress on talks on Capitol Hill on the bailout proposal. Will it happen today?

--Sara Goo