Russian stocks are expected to open in the red on Tuesday as Moody?s downgrade of 28 Spanish banks dented investors` hopes on the euro crisis solution.

´Overnight Moody`s rating agency cut the ratings of 28 Spanish banks following a June 13 downgrade of Spain`s sovereign rating by three notches.

U.S. stocks tanked Monday amid growing concerns about the outcome of a meeting of European Union leaders this week. The Dow Jones fell 1.1%, the S&P 500 lost 1.6% and the Nasdaq Composite dropped 2%.

Russian stocks closed in the red Monday amid renewed worries about the deteriorating situation in the euro zone. The MICEX dropped 1.26% and the RTS declined 1.6%.

European stocks fell Monday as investors` optimism about the European Union summit began to fade amid fear EU officials won`t be able to curb the euro crisis. The Stoxx Europe 600 index fell 1.5%, while the French CAC 40 dropped 2.2% and Germany`s DAX 30 shed 2.09%. The Spanish IBEX gave up 3.67% after the country`s government asked for a bailout.

Most Asian markets declined Tuesday, as Moody`s downgrade of Spanish banks and a request for a bailout from Cyprus prompted fresh concerns about Europe. Japan`s Nikkei Stock Average fell 0.9%, while South Korea`s Kospi slipped 0.2%. Australia`s S&P/ASX 200 index fell 0.6. In China, the Shanghai Composite lost 0.5%, although Hong Kong`s Hang Seng traded flat.

Photo - Spencer Platt / Getty Images / AFP
sections: Economics, World News