Monday morning euphoria over the deal to bail out Cyprus despite rescission of its levy on small bank deposits got stocks off to a good start but stumbled on subsequent comments by Jeroen Dijsselbloem, Eurogroup head of eurozone finance ministers, that the Cyprus restructuring plan could be a model for fixing larger EU banking issues. Rumors of a coming downgrade of Italian government debt accelerated the selling pressure and by 1:00 p.m., the SPDR S&P 500 was down 0.6%.
Monday morning euphoria over the deal to bail out Cyprus despite rescission of its levy on small bank deposits got stocks off to a good start but stumbled on subsequent comments by Jeroen Dijsselbloem, Eurogroup head of eurozone finance ministers, that the Cyprus restructuring plan could be a model for fixing larger EU banking issues. Rumors of a coming downgrade of Italian government debt accelerated the selling pressure and by 1:00 p.m., the SPDR S&P 500 was down 0.6%.
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