World stock markets fell Monday as investors worried that a deadly outbreak of swine flu in Mexico could go global and derail any global economic recovery, though a positive reaction to the restructuring plan from troubled U.S. automaker General Motors Corp. helped ease the selling pressure.

By mid afternoon London time, the FTSE 100 index of leading British shares was down 9.19 points, or 0.2 percent, at 4,146.80 while Germany's DAX fell 30.71 points, or 0.7 percent, to 4,643.61. The CAC-40 in France was 35.05 points, or 1.1 percent, lower at 3,068.80.

Meanwhile in the U.S., the Dow Jones industrial average was 10.59 points, or 0.1 percent, lower at 8,065.70 soon after the open while the broader Standard & Poor's 500 index fell 3.21 points, or 0.4 percent, to 863.02.

U.S. stocks opened far better than expected — at one stage Dow futures were pointing to a 150 point decline — while European markets clambered off days lows, after General Motors said it will cut 21,000 U.S. factory jobs by next year, phase out its storied Pontiac brand and ask the U.S. government to take company stock in exchange for half GM's government debt as part of a major restructuring effort needed to get more government aid.

Its restructuring announcement — seen as life or death for the company as it attempts to get more help from the U.S. government — was greeted positively in the markets, with the stock rising by a third at one stage.

"General Motors has gone down well as it's gone somewhat further than hoped and I think it deserves every inch of the support it is getting," said Howard Wheeldon, senior strategist at BGC Partners.

Despite the modest General Motors cheer, the markets remained lower amid worries surrounding the swine flu outbreak in Mexico as investors fret that a flu outbreak could set back already-enfeebled global trade and travel, just at a time when policy makers around the world have begun sounding more optimistic about the global economy's prospects.

Airlines and travel companies took the brunt of the selling amid concerns passengers could hold back from flying for fear of catching the virus, which has already reportedly spread as far as New Zealand. Authorities around the world are also preparing to issue advice to passengers — the European Union's Health Commissioner Andorra Vassiliou urged Europeans to postpone nonessential travel to the United States and Mexico "unless it is very urgent for them."