U.S. stocks erased gains, after the Standard & Poor’s 500 Index rose to within 1 point of its record high, as enthusiasm about Cyprus’s bailout agreement faded.
The S&P 500 rose less than 0.1 percent to 1,557.14 at 10:51 a.m. in New York, after rallying as much as 0.5 percent earlier. The Dow Jones Industrial Average lost 31 points, or 0.2 percent, to 14,481.03. Trading among S&P 500 shares was about 13 percent below the 30-day average at this time of day.
The S&P 500 declined 0.2 percent last week for its second weekly drop as Cyprus struggled to raise enough money to obtain the bailout and a report showed euro-area manufacturing contracted more than expected. The gauge has still climbed 9.2 percent in 2013, and advanced today within 1 point of a record 1,565.15 set in October 2007 before erasing its gains. The Dow reached an intraday high last week after first surpassing its all-time record on March 5.
The bull market in equities entered its fifth year this month as the S&P 500 more than doubled from its bottom in 2009, driven by an unprecedented three rounds of bond purchases by the Federal Reserve.
Cyprus, the euro-area’s third-smallest economy, obtained a 10 billion-euro ($13 billion) bailout after agreeing early this morning in Brussels to shrink its banking system. The finance ministers from the 17-member euro area ratified the country’s accord with the troika of the European Central Bank, the European Commission and the International Monetary Fund.
President Nicos Anastasiades agreed to shut down Cyprus Popular Bank Pcl (CPB), the country’s second-largest lender. Bank of Cyprus Plc will acquire the viable assets of the failed lender, along with 9 billion euros in emergency loans, according to three EU officials familiar with the matter.
The agreement spares accounts with less than the insured limit of 100,000 euros. The government will impose a loss of no more than 40 percent on uninsured depositors at Bank of Cyprus, two EU officials said. Uninsured depositors at Cyprus Popular Bank will be largely wiped out, two other officials said.
To contact the reporters on this story: Sarah Pringle in New York at [email protected]; Sofia Horta e Costa in London at [email protected]
To contact the editors responsible for this story: Andrew Rummer at [email protected]; Lynn Thomasson at [email protected]
The S&P 500 rose less than 0.1 percent to 1,557.14 at 10:51 a.m. in New York, after rallying as much as 0.5 percent earlier. The Dow Jones Industrial Average lost 31 points, or 0.2 percent, to 14,481.03. Trading among S&P 500 shares was about 13 percent below the 30-day average at this time of day.
The S&P 500 declined 0.2 percent last week for its second weekly drop as Cyprus struggled to raise enough money to obtain the bailout and a report showed euro-area manufacturing contracted more than expected. The gauge has still climbed 9.2 percent in 2013, and advanced today within 1 point of a record 1,565.15 set in October 2007 before erasing its gains. The Dow reached an intraday high last week after first surpassing its all-time record on March 5.
The bull market in equities entered its fifth year this month as the S&P 500 more than doubled from its bottom in 2009, driven by an unprecedented three rounds of bond purchases by the Federal Reserve.
Cyprus, the euro-area’s third-smallest economy, obtained a 10 billion-euro ($13 billion) bailout after agreeing early this morning in Brussels to shrink its banking system. The finance ministers from the 17-member euro area ratified the country’s accord with the troika of the European Central Bank, the European Commission and the International Monetary Fund.
President Nicos Anastasiades agreed to shut down Cyprus Popular Bank Pcl (CPB), the country’s second-largest lender. Bank of Cyprus Plc will acquire the viable assets of the failed lender, along with 9 billion euros in emergency loans, according to three EU officials familiar with the matter.
The agreement spares accounts with less than the insured limit of 100,000 euros. The government will impose a loss of no more than 40 percent on uninsured depositors at Bank of Cyprus, two EU officials said. Uninsured depositors at Cyprus Popular Bank will be largely wiped out, two other officials said.
To contact the reporters on this story: Sarah Pringle in New York at [email protected]; Sofia Horta e Costa in London at [email protected]
To contact the editors responsible for this story: Andrew Rummer at [email protected]; Lynn Thomasson at [email protected]