Both U.S. and European stock prices plunged on Monday following negative views of a proposed new European Union (EU) financial agreement.

At the New York Stock Exchange, the Dow Jones Industrial Average fell one-point-three percent from last Friday to close at 12-thousand-21.

Major stock markets in Europe also saw sharp drops in stock prices. London’s FTSE 100 index slipped one-point-eight percent to close at five-thousand-427 while in Paris, the CAC 40 index dropped two-point-six percent to three-thousand-89.

Meanwhile, credit ratings agency Moody's said EU nations had failed to come up with new measures to resolve the debt crisis in the region during an EU summit gathering last week. It added that it will review its ratings on all EU sovereign debt in the first quarter of next year as initially planned.