The surprise decision by eurozone leaders to part-fund a bailout of Cyprus by taxing bank deposits sent shockwaves through financial markets on Monday.
Shares tumbling as investors sold them to transfer cash into so-called safe-haven assets such as gold and German government bonds.
Frankfurt trader Robert Halver warned of fear contagion to places like Spain and Italy, saying: “The bank crisis is back again. If we look at the Spanish and Italian banks this morning, their shares were down significantly because there is the fear that there will be a run on the banks; that what is happening in Cyprus could also happen in Spain or Italy. It is vital that the small-time savers hold their nerve.”
Milan and Madrid were the biggest losers, both down two percent at mid afternoon, while the amount of Russian money in Cypriot banks .led to a sell off of shares in Moscow.
The interest that Italy and Spain had to pay to sell government bonds jumped sharply.
The cost of insuring against a government default in the eurozone’s southern rim also rose.
- 1IMF and World Bank annual meeting underway in Lima
- 2Italy becomes world’s largest wine producer ahead of France
- 3Air France meets pilots for first time since violent protest
- 4Volkswagen boss apologises to US Congress for diesel emissions scandal
- 5Ferrari ‘could push for 12 billion euro valuation’ in IPO
- 1Air France directors physically attacked after jobs loss plan confirmed
- 2Air France bosses’ shirts ripped off over jobs loss plan
- 3Sweden ‘increasingly experimenting’ with six-hour workdays
- 4Italy becomes world’s largest wine producer ahead of France
- 5SOLVIT: the go-to service when public authorities don’t play by the rules
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Syrian refugee tripped by shamed camera woman is named
- 3Hungarian reporter who tripped migrants apologises for her actions
- 4NASA discovers evidence of “liquid briny water” flowing on Mars
- 5Latest News Bulletin
- 6At least 220 dead in stampede outside Mecca, Saudi Arabia reports
- 7Hungarian camera woman caught on video kicking and tripping migrants could face jail
- 8International breaking news | euronews online world breaking news in video
- 9What the top tweets worldwide are saying about #refugees
- 10Why aren’t rich Gulf states welcoming Syrian refugees…or are they?
- 11Why aren’t rich Gulf states welcoming Syrian refugees… or are they?
- 12Which European countries offer the most social benefits to migrants?
- 13[Live] All the Rugby World Cup news in one place
- 14Spain: Catalan President faces ‘civil disobedience’ charges over breakaway vote
- 15International news | euronews, latest international news
- 16Banzai back in the vocabulary as Japan passes law allowing combat deployments
- 17Exclusive: shipwatchers chart Russian hardware heading into Med
- 18Migrant tripped up in Hungary gets Spanish football job
- 19Israel agents ‘incite’ stone-throwing in West Bank
- 20Hungary’s army can shoot rubber bullets and tear gas at refugees
Wires > Business
- 17:09 CET Ireland to channel tax windfall millions into spending
- 16:24 CET Fear and respect – VW’s culture under Winterkorn
- 15:56 CET Indian investigators raid Kingfisher boss’s home in loan probe
- 15:42 CET Hundreds of thousands protest in Berlin against EU-U.S. trade deal
- 13:16 CET China to intensify crackdown on illegal money transfers to fight…
- 04:31 CET Mexico expects first results in Volkswagen probe in three months
- 01:02 CET Exclusive – GE nears deal to sell over $30 billion of loans to…
- 23:20 CET VW brand faces full-year loss on scandal costs – sources