March 19, 2013
U.S. stocks started the week in negative territory on resurging concerns over euro zone debt crisis, sending the Dow 62 points lower, while the S&P 500 and the NASDAQ lost 0.55 percent and 0.35 percent, respectively.
Actually, global equities sank in early trading hours as euro zone officials said Cyprus should put tax on bank deposits in order to cut the cost of bail-out of battered country. Meanwhile, banks will be closed until Thursday as Cyprus government and European officials discussed tax rules on deposits, spurring investors to sell risky assets worldwide. However, Eurogroup said Cyprus deposit tax is a one-ff measure and deposits under 100k should be guaranteed, easing concerns in the markets.
On the corporate front, Goldman Sachs Group Inc. fell 1.9 percent to $151.95. Schlumberger slumped 3.9 percent to $76.34. Apple rallied 2.7 percent to $455.72, while Hewlett-Packard advanced 2.9 percent to $22.83, rising the most in the Dow.
European stocks drifted lower after the euro zone leaders forced Cyprus to adopt a levy on bank deposits, triggering concern that the region’s debt crisis will deepen. The Stoxx 600 lost 0.2 percent to 296.81 at the close of trading.
The euro weakened to its lowest level this year as gloomy environment in Cyprus reignited fears over ongoing debt crisis in the euro zone, dampening market confidence on the euro. Investors flocked towards less risky assets, liquidating long positions on the common currency. The euro sank 1.1 percent to $1.2930 vs. dollar.
Crude oil for April delivery added 29 cents, or 0.3%, to settle at $93.74 a barrel on the New York Mercantile Exchange despite stronger dollar and renewing concerns over debt crisis in the euro zone as investors speculated that crisis in Cyprus might not be contagious.
Despite strengthening dollar, gold added $12, or 0.8%, to settle at $1,604.60 an ounce on the Comex division of the
New York Mercantile Exchange, its highest close since Feb. 26, as investors purchased precious metal as safe haven in the face of deepening debt crisis in the euro zone.
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