LONDON (AP) — European and U.S. markets dropped Monday as a rising dollar reversed gains in oil company stocks, and financials slipped after Dutch banking and insurance giant ING announced plans to split in two.

After spending most of the day moderately higher, Britain's FTSE 100 closed down 1 percent to 5,191.74, Germany's DAX fell 1.7 percent to 5,642.16 and France's CAC 40 lost 1.7 percent to 3,744.45.

In early afternoon trading in New York, the Dow Jones industrial average index fell 0.9 percent to 9,883.45, while the Standard & Poor's 500 index lost 0.9 percent to 1,069.37.

Earlier, Asian markets rose, boosted by data showing South Korea's economy grew at its fastest rate in over seven years, underscoring the region's strengthening economic recovery.

In Europe and on Wall Street, oil companies initially strengthened, helped by the price of crude that hit a year-high of $82 a barrel last week. But those gains were largely wiped out as the dollar turned higher against other currencies in late afternoon European trading.

A stronger dollar often means lower oil prices, which in turn hurts the outlook for oil companies.

Banks on both sides of the Atlantic also saw losses after Dutch banking group ING Groep NV said it will split itself in two, spinning off its insurance arm to simplify its business and issuing €7.5 billion ($11.3 billion) in new shares to repay state bailout money. Its stock plummeted around 18 percent in Europe and the U.S.

Before the dollar strengthened, trading in Europe was fairly subdued, as investors awaited earnings reports from U.S. companies and others later in the week and U.S. gross domestic product figures on Thursday.

Investors have been hunting for definitive signs of growth in recent weeks and the report on GDP, the broadest measure of the economy's health, would provide the clearest sign yet of how far the economy has bounced back from its depths earlier in the year.

Earnings reports released throughout the week should also provide the insight traders crave. The health of the consumer will be analyzed through the results of companies such as Kellogg Co., Procter & Gamble Co. and Visa Inc. Consumer spending accounts for more than two-thirds of U.S. economic activity.

The energy and insurance industries also will be in focus throughout the week with ConocoPhillips and Exxon Mobil Corp. scheduled to report.

"Shares have lost some direction over recent weeks as investors have started to worry that the gains seen since the first part of the year have got ahead of the economic recovery," said Philip Gillett, sales trader at IG Index.

"We may well see some choppier trading in the days to come, ahead of Thursday's U.S. GDP figures but, barring any surprises here, most investors seem happy to pounce on these sell-offs and pick up stock on the cheap."

Markets in Asia were spurred on after South Korea's central bank said economic growth accelerated to 2.9 percent in the third quarter from the previous quarter — the fastest growth since the first quarter of 2002.

Asia's fourth-largest economy has been bolstered by government stimulus spending, low interest rates, and a falling won which boosts exports. Massive stimulus spending also played a part in China's economic growth accelerating in the third quarter, according to official figures last week.