Reports show that majority of European stocks have gone through a drop, expanding towards the Stoxx Europe 600 Index which witnessed the biggest decline in the last four months. This drop comes at a time when the lawmakers of Cypriot started a debate regarding the solutions of unlocking the funds of bailout, thus preventing the collapse of monetary situation. The data of the market shows that the index figures of the US has undergone nominal changes, whereas the Asian share market has retreated back.
A slid of 4.1 percent was observed at the MAN SE after there was declaration by the Volkswagen AG that the stocks of this company dropped 80.89 euros against each share in order to gain maximum control. The software maker of Swiss bank, Temenos Group AG, however helped add 1.2 percent after stating that they will be buying the Trinovus LLC as part of their plan for expansion in the banking market of the US, thus increasing the revenue level.
On the other hand the Stoxx Europe 600 Index dropped by 0.1 percent, which counts for 294.39 at London, after there was decline in almost 430 stocks in comparison to its previous 138 advances. The stock index of the Standard & Poor’s 500 Index got a high of less than 0.1 percent, along with 0.7 percent slip in the MSCI Asia-Pacific Index. After getting the highest gain rate in weeks, the index market of Stoxx 600 is gearing up towards 1 percent decline in the present week.
In the words of Stephane Ekolo, the head of strategists of the Market Securities in London says, “There is fear and insecurity that in case the Cyprus fails to find any solution within the provided time of its bailout, the central bank of Europe will no more provide with any liquidity to the banks, thus resulting in a collapse of the euro in the nation.” He also adds that if there is failure in exiting Cyprus, the euro-region will get into unpredictable troubles and effects.
It is stated that today the lawmakers of Cypriot will be discussing on solutions to get out of this locked bailout situation. As per reports of ECB, it is stated that there will be cuts in the funds of lenders after 25th March if no solution is availed within this time span.
The finance ministers of the euro-regions have produced a proposal of raising more than 5.8 billion euros at the earliest to reduce the troubles of emergency loan deals, as declared in a statement that was revealed yesterday at a teleconference.
The issue of Cyprus also failed to avail monetary support from Russia; however it is said that the two nations will indulge in discussions and talks, said Michael Sarris, the finance minister of Cyprus.