European stocks down on Cyprus tax worries

<p>Fears of another Eurozone crisis causes stocks to fall.</p>

Fears that the Cypriot bailout could spark a re-ignition of the Eurozone debt crisis has forced European stocks to fall for the second day in succession.

According to Bloomberg, The Stoxx 600 was down by 0.5 per cent to 296.04 at 14:02 GMT today (March 18th).

Matthieu Giuliani, a fund manager at Palatine Asset Management in Paris, told the news provider that this is a "bit scary" and also could create a precedent.

He added: "In the short term, it hurts the market. But this is a case specific to Cyprus. I don’t see Germany or the European Union imposing such a thing on Spain or Italy. It would create panic in the banking system."

The BBC reported this morning that overall London's 100 share index has fallen by one per cent, while Spain and Italy have seen falls of two per cent each.

The value of the Euro has also taken a hit, down by one per cent against both the pound and the dollar.

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