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European stocks fell for a third day before Cypriot lawmakers meet to discuss a 5.8 billion-euro ($7.5 billion) bank-deposit levy needed to win a bailout. U.S. index futures were little changed and Asian shares climbed.
The Stoxx Europe 600 Index (SXXP) fell 0.4 percent to 295.5 at 9:50 a.m. in London, trimming this year’s advance to 5.7 percent
Cypriot lawmakers will meet at 6 p.m. local time to debate how to spread the proposed tax on bank deposits among account holders. Parliament may not vote today, according to Defense Minister Fotis Fotiou. The levy, announced March 16, sparked outrage in the island nation and concern among investors about setting a precedent by breaking the taboo against raiding bank accounts. Banks and stock markets in Cyprus are closed today and tomorrow. The levy initially called for a tax of 6.75 percent of all deposits up to 100,000 euros and 9.9 percent above that. Cyprus could meet its target by imposing a 15.6 percent charge on deposits of more than 100,000 euros and no fee below that amount, a
Rio Tinto, the world’s second-biggest mining company, retreated 4.5 percent to 3,131.5 pence, the lowest since Dec. 4. Goldman Sachs downgraded its rating on the stock to conviction sell from neutral, saying it estimates earnings declines for the commodity producer after cutting iron ore price forecasts for the next three years on oversupply.
ThyssenKrupp plunged 6.2 percent to 17.23 euros, the biggest retreat since May 2012. Germany’s largest steelmaker is preparing to sell more than 1 billion euros of shares to increase its capital, Handelsblatt reported, citing unidentified people close to the company. ThyssenKrupp decline to comment, the newspaper said.
Richemont declined 3.3 percent to 76.90 Swiss francs, its biggest drop since Jan. 21. Goldman Sachs managed the sale of about 7 million Richemont shares for 77 francs each, according to two people familiar with the deal.
ARM Holdings Plc dropped 2.3 percent to 899 pence after saying Chief Executive Officer Warren East will retire in July after nearly 12 years in the role.
FTSE 100 6,442.3 -15.62 -0.24%
CAC 40 3,803.55 -21.92 -0.57%DAX 7,971.2 -39.50 -0.49%
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