News Column

Markets Open Lower on Cyprus Bailout

March 18, 2013

U.S. stocks opened lower Monday on news that a bailout for Cyprus included a tax on bank deposits.

"This morning the news is all about Cyprus, the home to 'dirty money' with an estimated $18 billion of Russian and other Mafia money on deposit," Jeffrey Saut, chief investment strategist at Jeffrey James & Associates said in a note to clients, MarketWatch reported.

The New York Times reported the plan is still up in the air. Cypriot President Nicos Anastasiades has delayed a parliamentary vote on the bailout for a second time, as he is having difficulty finding support for the proposal.

In midmorning trading Monday, the Dow Jones industrial average lost 56.45 points, or 0.39 percent, to 14,457.66.

The Nasdaq dipped 21.77 points, or 0.67 percent, to 3,227.30.

The Standard and Poor's 500 dropped 10.34 points, or 0.66 percent, to 1,550.36.

Market analysts are also questioning of stocks have or have not gotten ahead of themselves. On Friday, the Dow index closed lower after 10 consecutive days in the black, the longest winning streak in at least 16 years.

On Monday, 10-year U.S. treasury bonds rose 14/32 to yield 2.023 percent.

Against the dollar, the euro was at $1.2936 from Friday's $1.2907. Against the yen, the dollar was higher at 94.94 yen from 94.36 yen.

In Tokyo, the Nikkei 225 shed 340.32 points, 2.71 percent, to 12,220.63.

Source: Copyright United Press International 2013

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