Markets weaken on euro fears

North American markets weakened on Thursday as worries over a fast-approaching deadline for the debt woes in Cyprus intensified, overshadowing economic data on both sides of the border. The S&P/TSX composite was down 78.68 points at 12,747.87, while the TSX Venture Exchange dipped 2.99 of a point to 1,102.98.

The Canadian dollar gained 0.11of a cent (U.S.) to 97.63 cents.

After a failed plan to tax bank savings accounts and raise € 5.8 billion, Cyprus has returned to the drawing board to iron out a “Plan B.” The small Mediterranean island has four days to reach an agreement designed to raise enough money to avoid bankruptcy. The European Central Bank warned Thursday it will pull the plug on the country’s banks at the start of next week if no solution is found.

On Wall Street, the Cyprus effect was combined with a surprise drop in sales at Oracle during its fiscal third quarter, which yanked down technology stocks and knocked the wind out of markets. The Dow Jones industrials dropped 90.24 points to 14,421.49. The Nasdaq was down 31.59 points at 3,222.60 and the S&P 500 index slid 12.91 points to 1,545.80. In commodities, copper continued its pullback on uncertainty over European demand. The May contract lost 0.12 of a cent to $3.435 a pound. The May crude contract on the New York Mercantile Exchange fell $1.05 to settle at $92.45 a barrel. Gold stocks led the gains, as April bullion rose $6.30 to $1,613.80 an ounce.