Posted March 20, 2013 by Karen Varney in Markets

US Stocks Drop In response to the Sink in Euro

US Stocks Drop In response to the Sink in Euro
US Stocks Drop In response to the Sink in Euro

US stocks have now joined the worldwide sell-off that has been seen in response to the bailouts for the Island nation, Cyprus. The stocks at the Wall Street and at other related bodies, are also stumbling in response to the sinking of the euro. The euro here can be termed as the Titanic which is now taking the US indexes in the downward direction. When the opening bell had been sounded on Monday, the stocks opened by lower points of about 14,440. The industrial average was seemed to be down by nearly 74 points, which marks a time of worry for the investors as well as for all the stock markets in the country. At the same time, the S&P index has also been effectuated by the turmoil in the land of Cyprus.

The S&P was down by nearly 12 points for Monday, which is about 0.8 %. Moreover, the Nasdaq Index has also gone down by a percentage of about 0.8 %. In comparison to the US dollar, the Euro has fallen about an amount of 1 cent. On the past weekend, the representatives from the side of the IMF, Euro Zone and The European Central Bank had finally reached to an agreement in terms of the bailout plan for the Island Nation of Cyprus which was to levy the tax to an amount of about 10 %. On Tuesday, it has been said that the parliament would be meeting in order to make a proposal in this regard, in lines to which the citizens of Cyprus and nearby countries now seem to be quite infuriated.

The vote which would be held tomorrow was initially scheduled to be held today, but due to some deliberations from the side of the US government, it had to be postponed. It can be said here that the government is looking to buy some time in terms of amending the conditions and facets of the proposal which is sure to effectuate the US stock markets in an adverse manner. At the same time, most of the top markets in Europe were also seen to be going down today, which indeed elucidates the fragile nature of the European economies in the present times. It is also being speculated the bailout plan can also have a positive impact when viewed from strategic dimensions and sides, but the reality would only be witnessed when the plan would be implemented.

Karen Varney

Karen Varney is a member and former board member of the National Association of Journalists. Karen earned a Bachelor of Arts degree in economy and Busines from Yale University. Following graduation, she was the recipient of a Leo Beranek Reporter Training Fellowship. Her assignments have taken him around the world, An award-winning journalist and reporter, Karen is a highly respected expert on key issues that are on the top of the minds of investors and consumers around the world.