Futures drop on bank tax in small Euro nation

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Associated Press

Posted on March 18, 2013 at 9:00 AM

Updated Monday, Mar 18 at 9:02 AM

NEW YORK (AP) — U.S. stock futures are moving sharply lower after the Mediterranean island nation of Cyprus roiled international markets, proposing a hefty levy on bank deposits as a condition for a national bailout.

The measures being proposed in Cyprus are stoking fears of bank runs in the other 16 nations that use the euro.

Dow Jones industrial futures are down 83 points to 14,350. The broader S&P futures have lost 13.8 points to 1,539.80. Nasdaq futures are down 26 points to 2,764.50.

Lawmakers in Cyprus postponed the vote Monday on a deposit tax of 6.75 percent on accounts of up to €100,000 ($131,000) and 9.9 percent over that amount.

Still, shock over a threat to private property spread rapidly, sending markets in Britain, German and France down 1 percent or more.

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