Global stock markets fell on Tuesday,extending the previous days decline as investors continued to fret about Cyprus and the possible effect on the euro zone should it collapse. Markets have been volatile,with US stocks briefly rising in early trading as investors used strong housing data as an opportunity to pick up beaten down shares. In afternoon trading,however,shares returned to negative territory. European stocks,along with the euro and oil,had been pressured on concerns over the risk of failure for a bailout deal aimed at saving Cyprus from default and its banks from collapse. The Cypriot parliament rejected plans agreed by euro zone officials over the weekend to part-fund a 10 billion euro rescue of the island by seizing between 6.75 per cent and 9.9 per cent of deposits in Cypriot banks. A failure for the parliament to come to an agreement would put the bailout in jeopardy and raise the risk of default. The euro fell and hit a session low against the dollar,while European shares closed 0.4 per cent lower. Londons FTSE 100 slipped 0.3 per cent and Pariss CAC-40 fell 1.3 per cent while Frankfurts DAX fell 0.8 per cent. MSCIs measure of global stock markets was off 0.5 per cent. In the United States,the Dow Jones industrial average was down 33.07 points,or 0.23 per cent,at 14,418.99. The Standard & Poors 500 Index was down 8.31 points,or 0.54 per cent,at 1,543.79. The Nasdaq Composite Index was down 20.61 points,or 0.64 per cent,at 3,216.98. It is a reminder to investors that the situation in Europe is not resolved, said Andrew Milligan,global head of strategy for Standard Life Investments in Edinburgh.
