May 23, 2013
Cyprus, European data rattle global shares
Global equity markets fell today on growing fears of a banking collapse and debt default in Cyprus, and signs the economic downturn in Europe is deepening.
US stocks fell today as Oracle's revenue fell far short of expectations and worries intensified about the effect of Cyprus' troubles on the euro zone.
The Dow Jones industrial average slid 90.24 points, or 0.62 percent, to end at 14,421.49. The Standard & Poor's 500 Index dropped 12.91 points, or 0.83 percent, to finish at 1,545.80. The Nasdaq Composite Index lost 31.59 points, or 0.97 percent, to close at 3,222.60.
European shares dropped to a two-week closing low today, with investors taking more money off the table on poor German data and persistent worries over Cyprus.
The European Central Bank gave Cyprus until Monday to agree on a bailout or face losing emergency funds for its banks. Cyprus is struggling to craft an alternative plan to raise a 5.8-billion euro contribution in return for a 10 billion euro ($13 billion) bailout, without resorting to taxing bank deposits.
The FTSEurofirst 300 index ended 0.7 percent weaker at 1,190.72 points, the lowest close since March 7. The index, which hit a 4-1/2-year high last week, has fallen in 4 of past 5 sessions and heads for its worst weekly drop since November.
Japan's Nikkei average climbed to a fresh 4-1/2 year high on Thursday as financials and exporters gained on the news of the U.S. Federal Reserve's pledge to maintain stimulus and hopes of more monetary easing by the Bank of Japan's new leadership.
The benchmark Nikkei finished 1.3 percent higher at 12,635.69, its highest closing level since early September 2008.