May 25, 2013
Global shares end lower on Cyprus concerns
Global stock markets fell today, extending the previous day's decline as investors continued to fret about Cyprus and the possible effect on the euro zone should the island nation default and its banking system collapse.
Markets were volatile, with US stocks gyrating between solid losses and break-even as investors used strong US housing data as an opportunity to pick up beaten down shares.
The Dow Jones industrial average ended up 3.76 points, or 0.03 percent, at 14,455.82. The Standard & Poor's 500 Index was down 3.76 points, or 0.24 percent, at 1,548.34. The Nasdaq Composite Index was down 8.50 points, or 0.26 percent, at 3,229.10.
The S&P 500 closed down for a third straight day, though the Dow ended in slightly positive territory.
European shares fell for a second day, with investors spooked by the possibility that Cyprus could reject a bailout, likely leading to bank collapses and fallout for the euro zone.
Cyprus' parliament was widely expected to reject the 10 billion euro ($13 billion) rescue package - which, in a break with previous EU practice, includes a levy on bank accounts - at a vote today. Without the money, the island could face a sovereign default and even a euro zone exit, analysts say.
The pan-European FTSEurofirst 300 closed down 0.4 percent at 1,194.91 points after a volatile session.
The EuroSTOXX 50 index of euro zone blue chips - which tends to be more sensitive to swings in sentiment on the region - fell 1.1 percent.