European Markets Extend Losses Ahead Of Cyprus Vote

European Markets Extend Losses Ahead Of Cyprus Vote

Shares in European markets extended losses in the opening minutes of Tuesday's trading as a controversial bailout plan for Cyprus involving a levy on bank deposits kept investors on edge while Cyprus stock exchange suspends trading and banks remain closed on Tuesday and Wednesday.

STOXX Europe 600 slipped 0.18 percent or 0.53 points to 296.28
STOXX 50 fell 0.29 percent or 7.96 points to 2,697.51
Global financial markets tumbled after taking a jolt from a bailout terms in Cyprus, with the developments rekindling worries about the European debt crisis.

Cyprus parliament is due to meet at 4:00 pm London time Tuesday to vote on legislation imposing a levy on bank deposits as part of 10 billion euro bailout plan decided by eurozone finance ministers last week. The p arliament is unlikely to pass the law, though the government is hoping to push a legislation taxing deposits in a bid to stave off a default that could reignite euro zone's crisis.

Before Today's vote, euro zone finance ministers held an evening teleconference and said smaller savers with less than 100,000 euros should be protected.

Under the deal, depositors with more than 100,000 euros taxed at 9.9%, while those with less at 6.5%. While finance ministers said they favored a higher 15.6 percent hit for richer savers.

German DAX dropped 0.40% to 8,010.7
British FTSE 100 declined 0.20% to 6,444.82
On data front, inventors will turn their focus on inflation data from U.K. one day ahead of the key budget talks as Chancellor George Osborne will outline 2013 budget plan before the parliament. Investors are also awaiting the German ZEW economic sentiments data set for release later in the day.
As of 10:32 (GMT+2) the euro traded at $1.2933 after opening at $1.2932. The EUR/USD pair set an intraday high of $1.2934 and low of $1.2932.