LONDON (AFP) - Global equities slid on Tuesday and the dollar firmed against the euro as investors focused on weakness in the world economy and eurozone tensions while awaiting progress over a US debt deal. The London stock market fell 0.57 percent in late morning trade, Frankfurt shed 0.47 percent and Paris was down 0.40 percent. Madrid fell by 0.29 percent and Milan lost 1.04 percent. Asian markets also stumbled amid stubborn concern that the US top credit rating could be downgraded for the first time ever despite US lawmakers having agreed a plan to avert a debt default. Hong Kong closed down 1.07 percent, Tokyo sank 1.21 percent, Seoul slumped 2.35 percent and Shanghai shed 0.91 percent. So much for the relief rally that was supposed to occur on the back of the proposed debt deal, said Chris Weston, an analyst at IG Markets trading group. The focus has now shifted to the global economy with manufacturing deteriorating across most ... economies. European equities and the euro were also hit by new worries over the plight of debt-laden eurozone member nations Italy and Spain. The pair came under fresh pressure on Tuesday as nervous investors sold down their bonds on concerns that their debt problems will only get worse as economic growth slows. The European single currency sank as low as $1.4158, which was the lowest level since July 21. It later stood at $1.4182 in London deals, down from $1.4248 late in New York on Monday. Under the agreement reached late Sunday by President Barack Obama and top lawmakers, the US governments debt limit will be increased by about $2.4 trillion in two steps while Washington also makes deep spending cuts. The US Treasury has said that the $14.29-trillion debt ceiling must be raised by Tuesday or else it could be forced to default on its debts, with potentially calamitous effects. The debt deal, approved by the House of Representatives late on Monday, is expected to pass in the Senate on Tuesday. The dollar has staged a rebound this morning after the House of Representatives passed a deal to extend the USs debt ceiling and implement budget cuts of at least $2.1 trillion over the next 10 years, said research director Kathleen Brooks at trading site. The House was the more difficult roadblock for the bill to pass; it is now expected to pass the Senate in a vote later today. Adding to traders woes was a raft of weak figures from the United States and other major economies. Having become distracted by the consequences of a possible US debt default over the past weeks, (the) ... vote by the House of Representatives to pass the debt ceiling legislation should go some way to drawing a line under the matter with only a Senate vote to come,said CMC Markets analyst Michael Hewson said. This means markets have become more able to focus on the more mundane matters of economic data, not only in Europe and the United States, but also in Asia as well. The US manufacturing sector was flat in July, according to a closely watched index released Monday, in another sign of how the economy has stalled. The Institute of Supply Managements indexed survey of purchasing managers was at 50.9, down from 55.3 the previous month. A reading above 50 indicates expansion. The figures came days after figures showed the US economy grew by only 1.3 percent in the second quarter, after 0.4 percent in the firstthe weakest growth since it emerged from recession two years ago. Manufacturing in China, an economy on which many other nations rely to drive growth, also slowed abruptlywith one survey suggesting contractionwhile there was similar bad news in Australia, Taiwan and India.