Markets tumble over new fears for eurozone after Cyprus announces 10% tax on savers to fund bank bailout

by
March 18, 2013

Stock markets tumbled this morning as investors reacted to the unprecedented raid on bank accounts in Cyprus.

The move was intended to ensure the stability of the island state’s economy, but instead there are fears it could plunge Europe back into crisis.

The FTSE 100, which soared to a five-year high in recent days, fell by more than one per cent after markets opened, with banking shares particularly suffering.

At 9am, the index stood at around 6,420, down more than 60 points.

Asian markets also fell, with Japan’s Nikkei ending the day down by 2.5 per cent.

Traders are worried that the precedent set by the Cyprus move could spark an exodus of capital from other fragile European economies and jeopardise the region’s tentative recovery.

Unlike the previous rescues for Greece, Portugal, Ireland, and Spanish banks, the proposed Cypriot bailout is the first one that dips into ordinary people’s savings.

No comments yet - you can be the first!

Leave a Reply

Your email address will not be published. Required fields are marked *

Keep the Fake News Media in check.

Don’t let the MSM censor your news as America becomes Great Again. Over 500,000 Americans receive our daily dose of life, liberty and pursuit of happiness along with Breaking News direct to their inbox—and you can too. Sign up to receive news and views from The 1776Coalition!

We know how important your privacy is and your information is SAFE with us. We’ll never sell
your email address and you can unsubscribe at any time directly from your inbox.
View our full privacy policy.