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WASHINGTON (Reuters) - New York prosecutors are scheduled to meet with the lawyers for former IMF chief Dominique Strauss-Kahn on Wednesday to discuss whether the sexual assault case against him can be resolved through a dismissal or a plea agreement, The New York Times reported. The next scheduled court appearance is on July 18. Prosecutors have said their case has been weakened because of problems with the accuser's credibility. Pandora Bracelets

The Times cited a senior law enforcement official as saying prosecutors were still gathering evidence and were unlikely to make a decision on Wednesday on whether to dismiss the case or offer a plea bargain. Strauss-Kahn, 62, was arrested on May 14 at New York's JFK airport and subsequently was forced to resign as managing director of the International Monetary Fund. But revelations that the accuser had lied about being raped in Guinea in a U.S. asylum request, and changed details of her story about what she did after the incident in Strauss-Kahn's New York hotel suite, undermined her credibility and left prosecutors struggling to make a case.

Pandora Bracelets SaleA judge released Strauss-Kahn from house arrest and lifted strict bail conditions on Friday, although serious charges including sexual assault and attempted rape remain in place against the man once seen as a top French presidential contender. In Paris on Tuesday, French writer Tristane Banon filed a complaint alleging that Strauss-Kahn tried to rape her during an interview in a Paris apartment in 2003, when she was 22. European stock markets dropped on Wednesday when banking share prices tumbled in reaction to the eurozone's deepening debt crisis.

Pandora Bracelets Online London's FTSE 100 index of top shares fell 0.58 percent to 5,988.58 points approaching midday trade, Frankfurt's DAX 30 slipped 0.23 percent to 7,422.38 points and in Paris the CAC 40 index lost 0.36 percent to 3,964.88. The Stoxx 50 index of leading eurozone companies shed 0.63 percent to 2,832.99 points. "And so the European vicious circle continues with the spotlight focusing on Portugal once again," said Simon Denham of trading group Capital Spreads. "There seems to be no end in sight for the peripheral eurozone states as once one problem seems to have been temporarily resolved, the same problem in another country rears its ugly head." Moody's Investors Service late on Tuesday slashed its credit rating on indebted eurozone struggler Portugal, bailed out earlier this year, by four notches to Ba2 from Baa1, warning it could be lowered further. Cheap Pandora Charms

The agency said the downgrade reflects "the growing risk that Portugal will require a second round of official financing before it can return to the private market (to raise financing)." Greek Foreign Minister Stavros Lambridinis attacked on Wednesday what he termed the "madness" of ratings agencies in the European debt crisis, saying they exacerbated an already difficult situation. On Monday, Standard & Poor's warned that current proposals for a second Greek bailout could constitute an effective default. Banking shares meanwhile led the losers on Wednesday, with Royal Bank of Scotland down 3.04 percent to 38 pence, UniCredit diving 4.73 percent to 1.432 euros and Credit Agricole shedding 3.39 percent to 9.994 euros. Pandora Charms Sale

US stock markets ended mostly lower on Tuesday, giving up a bit of the ground they gained during a strong five-day rally last week. The Dow Jones Industrial Average fell 0.10 percent to close at 12,569.87 points. US markets had closed on Monday because of the July 4 Independence Day holiday. Before the holiday, Wall Street enjoyed its strongest week in two years, with the Dow surging 5.4 percent in five days. Japan's Nikkei index closed above 10,000 points on Wednesday to mark its highest finish since March 11 when an earthquake and tsunami devastated the northeast coast and triggered a nuclear crisis. Pandora Beads Charms