Photo: Flickr / TimOve
The tiny island nation of Cyprus is rattling the global financial markets.First the scoreboard:
Dow: 14,453, -60.8 pts, -0.4 per cent
S&P 500: 1,551, -9.0 pts, -0.6 per cent
NASDAQ: 3,235, -13.8 pts, -0.4 per cent
And now the top stories:
- On Saturday, EU leaders announced a 10 billion euro bailout deal for Cyprus that would involve a surprise levy on Cypriot bank depositors. This sent depositors running to ATMs to drain their accounts. In addition to Cypriot mum and pops, Russian oligarchs, mobsters, and money launderers are also expected to take a hit.
- Experts seem to be concerned that this sets a bad precedent. Specifically, depositors might fear their money could eventually be subject to surprise levies.
- But given the market’s reaction, traders seem to think that the damage will be minimal.
- In U.S. economic news, the NAHB homebuilder confidence index unexpectedly fell to 44. Economists were expecting it to increase to 47. “That said, even with the recent sideways trend, the level of the index is still high enough to signal rapid growth in starts and new home sales,” reassured UBS economist Sam Coffin.
- Don’t Miss: MORGAN STANLEY: Here’s What 15 Major Commodities Will Do For The Next Two Years >
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