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Look Out Below, Cyprus Edition

Posted By Barry Ritholtz On March 18, 2013 @ 5:40 am In Bailouts,Markets | Comments Disabled

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[1]

 

Cyprus, according to the CIA factbook [2], is a former British colony with a population of 1,138,071 people, 77% of whom are Greek.

The tiny island nation rarely moves markets, but is at the center of today’s weakness, as fears that Cyprus could kick off of the next [3] European crisis.

The Euro fell 1.1%, as the dollar rallied as monies poured into US Treasuries as a safe haven. European stocks slid on contagion fears. In Asia, markets were significant pressure. MSCI Asia Pacific Index (MXAP) sank 2%; Japan’s Nikkei 225 dropped 2.7% (biggest decline in 10 months). Even Australia’s S&P/ASX 200 Index got hit for 2.1%.

Gold advanced past $1600 [4] for the first time in 2 weeks.

How significant is the Cyprus story to markets? Over the long haul, probably not much, but as of 5am this morning, the first 6 most popular stories on Bloomberg.com are all Cyprus related.

 

 

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Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2013/03/look-out-below-cyprus-edition/

URLs in this post:

[1] Image: http://www.bloomberg.com/markets/stocks/futures/

[2] CIA factbook: https://www.cia.gov/library/publications/the-world-factbook/geos/cy.html

[3] next: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/16/why-todays-cyprus-bailout-could-be-the-start-of-the-next-financial-crisis/

[4] Gold advanced past $1600: http://www.bloomberg.com/news/2013-03-17/gold-climbs-above-1-600-as-cyprus-turmoil-spurs-haven-demand.html

[5] Image: http://www.bloomberg.com/news/2013-03-17/u-s-stock-futures-euro-decline-on-cyprus-turmoil-yen-gains.html

[6] Image: http://www.bloomberg.com/video/australian-healthcare-stocks-favored-jlpqyFcjRRKnaAmBpy_j3Q.html

[7] Asian Stocks Drop Most in 8 Months on Cyprus Deposit Tax: http://www.bloomberg.com/news/2013-03-18/asian-stocks-drop-most-in-month-on-cyprus-deposit-tax.html

[8] Image: http://www.bloomberg.com/news/2013-03-17/euro-drops-versus-yen-dollar-as-cyprus-turmoil-roils-markets.html

[9] Image: http://www.bloomberg.com/news/2013-03-17/europe-braces-for-renewed-turmoil-as-cyprus-deposit-levy-at-risk.html

[10] Image: http://www.bloomberg.com/news/2013-03-18/sovereign-bonds-climb-in-asia-as-cyprus-turmoil-spurs-haven-bids.html

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