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Futures drop on bank tax in small Euro nation

Monday - 3/18/2013, 9:28am  ET

A police officer stands on duty behind protest banners outside of parliament before a meeting in capital Nicosia, Cyprus, Monday, March 18, 2013. Cyprus' president is briefing lawmakers ahead of a crucial parliamentary vote on a controversial levy on bank deposits that the cash-strapped country's creditors have demanded in exchange for a euro10 billion (US$13 billion) rescue package.(AP Photo/Petros Karadjias)

NEW YORK (AP) -- U.S. stock futures slumped Monday after the Mediterranean island nation of Cyprus proposed a hefty levy on bank deposits as a condition for a national bailout. The proposal roiled international markets,

The measures being proposed in Cyprus are stoking fears of bank runs in the other 16 nations that use the euro, though economists saw little chance of similar policies taking effect elsewhere, or even being approved in Cyprus.

Dow Jones industrial futures fell 77 points to 14,356. The broader S&P futures gave up 13.4 points to 1,540. Nasdaq futures shed 21 points to 2,769.50.

Lawmakers in Cyprus postponed the vote Monday on a deposit tax of 6.75 percent on accounts of up to EUR100,000 ($131,000) and 9.9 percent over that amount.

Still, shock over a threat to what had been considered private property spread rapidly, sending markets in Britain, German and France down 1 percent or more.

Markets in Asia slid between 2 percent and close to 3 percent.

U.S. markets are already trading at or near record levels and many investors have been trying to determine when the market will peak.

The disruption from Europe appeared to provide enough reason to take money off the table for many.


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