New York Extends Global Markets Sell-off on Cyprus Worries

Nichole Harper
18 Mar, 2013
New York City

Cyprus bailout conditions weighed heavily on market sentiment in New York trading this morning. Market indexes and stocks were in a broad decline and commodities eased as well. Gold gained.

[R]10:45 AM New York – Cyprus bailout conditions weighed heavily on market sentiment in New York trading this morning. Market indexes and stocks were in a broad decline and commodities eased as well. Gold gained.[/R]

U.S. stocks traded lower on Cyprus worries and market indexes halted a rally of the last two weeks.

Market indexes in New York declined after euro zone worries resurfaced.

The S&P 500 index declined 0.5% to 1,553 and the Nasdaq Composite Index fell 0.4% to 3,233.

Markets in Europe and Asia plunged after the euro zone finance ministers demanded a tax on depositors to raise as much as 5.8 billion euros to win a 10 billion euros bailout from troika of lender of European Central Bank, European Commission and International Monetary Fund.

The unexpected move set off the worries that other struggling nations in the euro zone may face similar bank deposit tax and may set off a bank run in Greece, Italy and Spain.

Markets across the euro zone dropped sharply after the euro zone finance ministers proposed a one-time tax on bank depositors to pay for the bank bailout.

In London trading, FTSE 100 index slid 0.7% or 47.4 to 6,442 and in Frankfurt, the DAX index dropped 1.2% to 85.9 to 7,947. In Paris, CAC 40 index declined 1.4% or 52.9 to 3,791.

Banks declined in the euro zone on the worries that heavily indebted nations in the euro zone like Greece, Spain and Italy may face similar steps to levy tax on depositors.

Barclays, Societe Generale, Deutsche Bank and Santander declined more than 1%.

Stocks in Review

Cumulus Media Inc. ((CMLS)) declined 3.4% or 11 cents to $3.21 after the radio station operator said net revenue in the fourth quarter ending in December rose 1% to $284.2 million. Net loss in the quarter widened to $84.8 million or 51 cents a diluted share compared to $13.1 million or 14 cents a share a year ago period.

Dex One Corporation ((DEXO)) rose 2 cents to $2.13 after the printing and publishing company reported net revenue in the fourth quarter ending in December dropped 14.4% to $301.3 million from the same period of last year. Net loss in the quarter swung to $35.4 million or 70 cents a diluted share compared to net income of $5.5 million or 11 cents a share a year ago.

Dex One and SuperMedia today filled a plan for merger that is expected to close in the first half of this year.

j2 Global, Inc. ((JCOM)) fell 32 cents to $36.83 after it agreed to acquired internet faxing services provider MetroFax, Inc. Terms of the acquisitions were not disclosed and the financial impact is not expected to be material.

Sterling Construction Company, Inc. ((STRL)) dropped 3.4% or 39 cents to $10.65 after the construction company reported revenues in the fourth quarter ending in December surged 39% to $158.1 million from the same period of last year. In the quarter net income swung to $2.9 million or 1 cent a diluted share compared to net loss of $43.6 million or $2.72 cents a share a year ago period.