World eq­ui­ties steady af­ter EU con­fu­sion


Euro­pean mar­kets stead­ied on Tues­day, a day af­ter they were roiled by a sug­ges­tion from a lead­ing Euro­pean fi­nance of­fi­cial that the Cyprus bailout was a model for the fu­ture.

Af­ter ini­tially greet­ing the bailout of Cyprus, stocks and the euro sank on re­ports that Jeroen Di­js­sel­bloem, who chairs the meet­ings of the fi­nance min­is­ters of the 17 Euro­pean Union coun­tries that use the euro, said the Cyprus bailout was a tem­plate. Though he later at­tempted to re­tract his com­ments and de­scribed Cyprus as a "spe­cific case with ex­cep­tional chal­lenges," Di­js­sel­bloem has left the im­pres­sion that those with bank de­posits above the unin­sured level of €100,000 may be tapped in any fu­ture bailout. In­vestors mon­i­tor stock in­for­ma­tion at a bro­ker­age house in He­fei, An­hui province, on Tues­day. The Shang­hai Com­pos­ite In­dex lost 1.2 per cent to 2,297.67 points while the smaller Shen­zhen Com­pos­ite In­dex fell 0.7 per cent to 953.36 points.

"Di­js­sel­bloem may have done his ut­most yes­ter­day to ini­ti­ate global panic in fi­nan­cial mar­kets ... but for­tu­nately the down­side for eq­ui­ties has been rel­a­tively con­tained, at least for now," said Fawad Raza­qzada, mar­ket strate­gist at GFT Mar­kets. In Europe, the FTSE 100 in­dex of lead­ing Bri­tish shares was up 0.1 per cent at 6,385 while Ger­many's DAX rose 0.3 per cent to 7,894. The CAC-40 in France was 0.7 per cent higher at 3,754. The fo­cus will likely re­main on the fall­out from the Cyprus deal, es­pe­cially as the coun­try's banks are all sched­uled to stay closed un­til Thurs­day. Be­fore a late on Mon­day night de­ci­sion, all but the Bank of Cyprus and Laiki, were due to re­open on Tues­day, hav­ing been closed for 10 days.

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