Futures drop on bank tax in small Euro nation

AP News
Posted: Mar 18, 2013 9:03 AM
Futures drop on bank tax in small Euro nation

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 €100,000 ($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.