France's Hollande names Bernard Cazeneuve Budget Minister

European stocks dropped for a third day as Cypriot President Nicos Anastasiades said lawmakers will probably reject a 5.8 billion-euro ($7.5 billion) bank-deposit levy needed to win a European Union-led bailout.

Cypriot lawmakers began debating how to spread the proposed tax on bank deposits among account holders today. The levy, announced March 16, sparked outrage in the island nation and concern among investors about setting a precedent by breaking the taboo against raiding accounts.

Parliament will probably reject the proposals, Anastasiades told Sweden’s TV4 channel in an interview. Banks and stock markets in Cyprus are closed until Thursday.

Stocks fell even as German investor confidence rose to the highest level in almost three years in March. The ZEW Center for European Economic Research said its index of investor and analyst expectations gained to 48.5 from 48.2 in February. Economists in a Bloomberg survey had predicted 48.1.

National benchmark indexes declined in 15 of the 18 western European markets. The U.K.’s FTSE 100 dropped 0.4 percent, Germany’s DAX fell 0.8 percent and France’s CAC 40 sank 1.2 percent.

Rio Tinto, the world’s second-biggest mining company, retreated 5.4 percent to 3,099.5 pence, the largest drop since November 2011. Goldman Sachs downgraded its rating on the stock to conviction sell from neutral, saying it estimates earnings declines for the commodity producer after cutting iron ore price forecasts for the next three years on oversupply.

ThyssenKrupp plunged 5.6 percent to 17.34 euros, the biggest retreat since March 6, 2012. Germany’s largest steelmaker is preparing to sell more than 1 billion euros of shares to increase its capital, Handelsblatt reported, citing unidentified people close to the company. ThyssenKrupp decline to comment, the newspaper said.

Richemont declined 4.5 percent to 75.95 Swiss francs, its biggest drop since Jan. 21. Goldman Sachs managed the sale of about 7 million Richemont shares for 77 francs each, according to two people familiar with the deal.

ARM Holdings Plc declined 2.8 percent to 895 pence after saying Chief Executive Officer Warren East will retire in July after nearly 12 years in the role. The designer of chips for Apple Inc. iPhones said Simon Segars, currently president of ARM, will take over.

Iliad SA, the French low-cost mobile carrier, surged 6.1 percent to 158.8 euros, the highest since at least 2004. Net income was 186.5 million euros for 2012, beating all but one of the eight analyst estimates.

Brent oil fell as Cypriot lawmakers prepared to decide whether to proceed with a bank levy amid concern that Europe’s debt crisis will worsen. Brent’s premium to West Texas Intermediate oil shrank to less than $15 a barrel.

The European benchmark dropped as much as 1.1 percent, trimming the spread to WTI, the grade traded in New York, to the narrowest level since January. The vote scheduled for later today will determine how to share the burden of raising 5.8 billion euros ($7.5 billion) from bank depositors to unlock emergency loans. A government report tomorrow may show U.S. crude supplies climbed to a nine-month high last week.

Finance chiefs from the 17 euro countries kept pressure on Cyprus as they signaled flexibility in applying the tax announced three days ago. The levy sparked outrage in the island nation and concern among investors about setting a precedent by breaking a taboo against raiding bank accounts.

Brent oil for May settlement declined $1.17, or 1.1 percent, to $108.34 a barrel on the London-based ICE Futures Europe exchange.

WTI for April delivery, which expires tomorrow, dropped to $93.11 a barrel on the New York Mercantile Exchange. 

EUR/USD $1.2900, $1.2925, $1.3000, $1.3065, $1.3140, $1.3150

USD/JPY Y94.20, Y94.30, Y94.50, Y95.00, Y95.25, Y95.60, Y96.00, Y96.50

GBP/USD $1.5000, $1.5100, $1.5170

AUD/USD $1.0330, $1.0400, $1.0425

U.S. stock futures rose as new home construction increased and investors awaited the start of a Federal Reserve meeting.

Global Stocks:

Nikkei  12,468.23 +247.60 +2.03%

Hang Seng 22,041.86 -41.50 -0.19%

Shanghai Composite 2,257.43 +17.42 +0.78%

FTSE  6,460.2 +2.28 +0.04%

CAC  3,802.83 -22.64 -0.59%

DAX 7,988.04 -22.66 -0.28%

Crude oil $93.83 +0.10%

Gold $1602.30 -0.14%

Upgrades:

eBay (EBAY) upgraded from Hold to Buy at Cantor Fitzgerald

Other:

Google (GOOG) initiated with a Mkt Outperform at JMP Securities  

Facebook (FB) initiated with a Mkt Perform at JMP Securities

Amazon.com (AMZN) initiated with a Mkt Perform at JMP Securities

eBay (EBAY) initiated with a Mkt Perform at JMP Securities

Yahoo! (YHOO) initiated with a Outperform at Raymond James

Data

00:30 Australia RBA Meeting's Minutes March

02:00 China Leading Index February 1.3% 1.3%

09:30 United Kingdom Retail Price Index, m/m February -0.4% +0.9% +0.7%

09:30 United Kingdom Retail prices, Y/Y February +3.3% +3.3% +3.2%

09:30 United Kingdom RPI-X, Y/Y February +3.3% +3.3% +3.2%

09:30 United Kingdom Producer Price Index - Input (MoM) February +1.3% +1.6% +3.2%

09:30 United Kingdom Producer Price Index - Input (YoY) February +1.8% +0.8% +2.5%

09:30 United Kingdom Producer Price Index - Output (MoM) February +0.2% +0.3% +0.8%

09:30 United Kingdom Producer Price Index - Output (YoY) February +2.0% +1.8% +2.3%

09:30 United Kingdom HICP, m/m February -0.5% +0.7% +0.7%

09:30 United Kingdom HICP, Y/Y February +2.7% +2.8% +2.8%

09:30 United Kingdom HICP ex EFAT, Y/Y February +2.3% +2.2% +2.3%

10:00 Germany ZEW Survey - Economic Sentiment March 48.2 47.9 48.5

10:00 Eurozone ZEW Economic Sentiment March 42.4 43.7 33.4

10:00 Eurozone Construction Output, m/m January +0.3% -1.4%

10:00 Eurozone Construction Output, y/y January -4.6% -7.3%

10:00 Eurozone ECB President Mario Draghi Speaks March

10:30 United Kingdom BOE Inflation Letter March

The euro fell sharply against the dollar, in the second half of the day was able to restore most of the positions. Note that today at 16.00 GMT in the Cyprus Parliament will vote on a controversial rescue package. President Nikos Anastasiadis has already indicated that the plan was not supported, and the Government is working on a "plan B". According to reports, Cyprus prone to exemption from tax on deposits of less than 20 thousand euros. 6_75% tax will be introduced for depositors whose deposits range from 20 to 100 thousand euros, while the deposits of more than 100 thousand will be taxed at a rate of 9.9% and 12.5% ​​- for deposits of more than 500 thousand euros. However, the head of the Central Bank of Cyprus has made it clear this morning that the output from the application of tax deposits of less than E20 thousand will cause the authorities to be able to collect the required amount of foreign creditors E5.8 billion by the end of yesterday's conference call said the Eurogroup that Cyprus will be able to mitigate the impact of the tax on savings for small savers. IMF chief K. Lagarde today also endorsed the idea. According to sources in the EU, Lagarde even proposed to impose the largest contributors tough tax of 30-40%.

The pound rose against the dollar, departing from the values ​​of the session. Note that the data released today, which were presented by the Office for National Statistics showed that the annual inflation rate in the UK increased in February, while still achieving the highest level since May, which adds further pressure on household budgets and complicates the task of the Bank of England for the economic recovery . According to the report, the annual rate of inflation rose last month by 2.8%, compared with 2.7% in January, driven by rising prices for household gas and electricity, as well as the increase in the cost of gasoline. Note that, despite this increase, the value of the indicator is fully in line with the expectations of many experts. In addition, the report showed that on a monthly basis the value of the consumer price index rose 0.7%, which followed a decline of 0.5% in January. We also add that growth has coincided with the estimates of economists.

The New Zealand dollar fell after Finance Minister Bill English said the New Zealand dollar is overvalued. He also noted that low interest rates may remain that way for longer than previously thought.

EUR / USD: during the European session the pair fell to $ 1.2914, but later grew up, and is now trading at $ 1.2944

GBP / USD: during the European session the pair fell to $ 1.5071, and then rose to $ 1.5134

USD / JPY: during the European session the pair fell to Y95.20

At 12:30 GMT, Canada will announce the change of volume of production and the supply of wholesale change for January. At 12:30 GMT the U.S. will report the volume of building permits issued and the number of new foundations of bookmarks for February. At 20:30 GMT the U.S. will release data on the change in the volume of crude oil, according to the API for March. At 21:45 GMT New Zealand will report on the balance of the current account balance of payments on current account deficit to GDP for the 4th quarter. At 23:30 GMT Australia will provide an index of leading economic indicators from the Melbourne Institute in January.

EUR/USD

Offers $1.3040/50, $1.3010, $1.2980-00, $1.2970

Bids $1.2900, $1.2985/75, $1.2855-40

GBP/USD

Offers $1.5250/60, $1.5220/35, $1.5200, $1.5180, $1.5150/60

Bids $1.5070, $1.5050/40, $1.5010/00

AUD/USD

Offers $1.0490/00, $1.0455/60, $1.0450, $1.0415/20, $1.0405/10

Bids $1.0350, $1.0340/30, $1.0310/00, $1.0285/80, $1.0250

EUR/JPY

Offers Y124.80, Y124.45/50, Y124.20, Y124.00, Y123.65/70

Bids Y123.10/00, Y122.50, Y122.10/00, Y121.50

EUR/GBP

Offers stg0.8695/700, stg0.8680/85, stg0.8650, stg0.8595/600

Bids stg0.8535/30, stg0.8505/00, stg0.8450/40, stg0.8410/00

USD/JPY

Offers Y96.45/50, Y96.25/30, Y96.00, Y95.70/75

Bids Y95.10/00, Y94.90/85, Y94.50

European stocks fell for a third day before Cypriot lawmakers meet to discuss a 5.8 billion-euro ($7.5 billion) bank-deposit levy needed to win a bailout. U.S. index futures were little changed and Asian shares climbed.

The Stoxx Europe 600 Index (SXXP) fell 0.4 percent to 295.5 at 9:50 a.m. in London, trimming this year’s advance to 5.7 percent

Cypriot lawmakers will meet at 6 p.m. local time to debate how to spread the proposed tax on bank deposits among account holders. Parliament may not vote today, according to Defense Minister Fotis Fotiou. The levy, announced March 16, sparked outrage in the island nation and concern among investors about setting a precedent by breaking the taboo against raiding bank accounts. Banks and stock markets in Cyprus are closed today and tomorrow. The levy initially called for a tax of 6.75 percent of all deposits up to 100,000 euros and 9.9 percent above that. Cyprus could meet its target by imposing a 15.6 percent charge on deposits of more than 100,000 euros and no fee below that amount, a

Rio Tinto, the world’s second-biggest mining company, retreated 4.5 percent to 3,131.5 pence, the lowest since Dec. 4. Goldman Sachs downgraded its rating on the stock to conviction sell from neutral, saying it estimates earnings declines for the commodity producer after cutting iron ore price forecasts for the next three years on oversupply.

ThyssenKrupp plunged 6.2 percent to 17.23 euros, the biggest retreat since May 2012. Germany’s largest steelmaker is preparing to sell more than 1 billion euros of shares to increase its capital, Handelsblatt reported, citing unidentified people close to the company. ThyssenKrupp decline to comment, the newspaper said.

Richemont declined 3.3 percent to 76.90 Swiss francs, its biggest drop since Jan. 21. Goldman Sachs managed the sale of about 7 million Richemont shares for 77 francs each, according to two people familiar with the deal.

ARM Holdings Plc dropped 2.3 percent to 899 pence after saying Chief Executive Officer Warren East will retire in July after nearly 12 years in the role.

To date:

FTSE 100 6,442.3 -15.62 -0.24%

CAC 40 3,803.55 -21.92 -0.57%

EUR/USD $1.2900, $1.2925, $1.3000, $1.3065, $1.3140, $1.3150

USD/JPY Y94.20, Y94.30, Y94.50, Y95.00, Y95.25, Y95.60, Y96.00, Y96.50

GBP/USD $1.5000, $1.5100, $1.5170

AUD/USD $1.0330, $1.0400, $1.0425

Asian stocks pared gains after a report suggested Cyprus’ parliament won’t approve a tax on bank deposits needed to secure a euro-zone bailout.

Nikkei 225 12,468.23 +247.60 +2.03%

Hang Seng 22,041.86 -41.50 -0.19%

S&P/ASX 200 4,987.4 -28.00 -0.56%

Shanghai Composite 2,257.43 +17.42 +0.78%

Esprit Holdings Ltd., a Hong Kong-based clothier that counts Europe as its No. 1 market, gained 2.2 percent, paring gains of as much as 5.7 percent. 

Alacer Gold Corp. advanced 2.3 percent in Sydney as gold traded near its highest in three weeks. 

Mainland utilities gained after profit from China Resources Power Holdings Co. beat estimates, raising expectations the group may outperform.

Asian stocks pared gains after a report suggested Cyprus’ parliament won’t approve a tax on bank deposits needed to secure a euro-zone bailout.

Nikkei 225 12,468.23 +247.60 +2.03%

Hang Seng 22,041.86 -41.50 -0.19%

S&P/ASX 200 4,987.4 -28.00 -0.56%

Shanghai Composite 2,257.43 +17.42 +0.78%

Esprit Holdings Ltd., a Hong Kong-based clothier that counts Europe as its No. 1 market, gained 2.2 percent, paring gains of as much as 5.7 percent. 

Alacer Gold Corp. advanced 2.3 percent in Sydney as gold traded near its highest in three weeks. 

Mainland utilities gained after profit from China Resources Power Holdings Co. beat estimates, raising expectations the group may outperform.

Asian stocks headed for the biggest decline in eight months, led by raw-material producers, amid concern an unprecedented levy on bank deposits in Cyprus will plunge Europe back into crisis and that China will increase efforts to curb property prices.

Nikkei 225 12,220.63 -340.32 -2.71%

Hang Seng 22,083.36 -449.75 -2.00%

S&P/ASX 200 5,015.4 -104.84 -2.05%

Shanghai Composite 2,240.02 -38.39 -1.68%

Every benchmark gauge in the Asia-Pacific dropped, with the regional measure shedding about $180 billion in share value, equivalent to seven times the size of Cyprus’ economy.

Toyota Motor Corp., the world’s biggest automaker, slid 3.4 percent as the yen gained against all its major peers.

Esprit Holdings Ltd., a Hong Kong-based clothier that counts Europe as its No. 1 market, dropped 2 percent.

BHP Billiton Ltd. (BHP) fell 2.4 percent in Sydney, leading mining companies lower.

European stocks retreated, with the Stoxx Europe 600 Index paring an earlier tumble, after the euro area forced Cyprus to adopt a levy on bank deposits, prompting concern that the region’s debt crisis will reignite.

While Cyprus accounts for less than half a percent of the 17-nation euro area’s economy, the raid on bank accounts risks a resumption of the financial crisis that began in 2009 in Greece. Moody’s Investors Service said that the move limits support for bank creditors across Europe and shows that policy makers will risk disrupting financial markets to avoid sovereign defaults.

The levy enabled the euro area to lower its bailout of Cyprus to 10 billion euros ($13 billion) from an original figure of about 17 billion euros. President Nicos Anastasiades will try to persuade lawmakers to back the plan. Parliament postponed a vote due to take place this afternoon. Cyprus will leave its banks closed until March 21, a government official said, declining to be identified.

National benchmark indexes fell in every western-European market that opened today except Ireland and Iceland. The U.K.’s FTSE 100 and France’s CAC 40 lost 0.5 percent, while Germany’s DAX declined 0.4 percent. Luxembourg’s LuxX Index dropped 2.2 percent today, its biggest slide in seven months.

A gauge of bank shares sank 1.5 percent for the worst performance on the Stoxx 600. UniCredit lost 3.6 percent to 3.69 euros, while Societe Generale SA, France’s second-largest lender, slid 3.3 percent to 28.98 euros. Banco Santander SA, Spain’s biggest bank, dropped 2.3 percent to 5.83 euros.

Ericsson lost 2.2 percent to 83.50 kronor after agreeing to wind down the ST-Ericsson joint venture and divide the assets. The electronics companies failed to find a buyer for the business. STMicroelectronics will incur cash costs of $350 million to $450 million, lower than the charges it had estimated in January. The shares climbed 5.4 percent to 6.17 euros.

Marks & Spencer Group Plc surged 6.9 percent to 398.1 pence, its biggest gain in almost four years. The shares earlier rallied as much as 9.4 percent after the Sunday Times reported that Qatar Investment Authority has considered an 8 billion- pound ($12 billion) bid for the U.K.’s largest clothing retailer. The newspaper cited unidentified people working in the City of London. A person close to the sovereign-wealth fund said today that QIA has not considered making an offer.

U.S. stocks fell, after the Dow Jones Industrial Average reached record highs last week, as a levy imposed by euro-area leaders on Cypriot bank deposits sparked concern the region’s debt crisis is intensifying.

Euro-region finance ministers forced depositors in Cypriot banks to share in the cost of rescuing the island nation, reducing the cost of the bailout by 5.8 billion euros ($7.5 billion) to 10 billion euros. The country accounts for less than half a percent of the 17-nation euro-area economy.

A parliamentary vote on the levy due to take place today was postponed. Equity markets are closed in Cyprus and Greece for a scheduled bank holiday today. Cypriot banks will remain closed tomorrow and March 20, a government official said, asking not to be identified.

The Federal Open Market Committee is scheduled to begin a two-day meeting tomorrow. The committee in December agreed to link its zero-rate policy to thresholds for unemployment and inflation so investors and households know what conditions will prompt the Fed to consider raising its record-low interest rate.

J.C. Penney Co. rallied 6.2 percent, the most in the S&P 500, to $16.44. The department store chain could turn its top 300 stores into a real estate investment trust-like entity that would sublet space to other brands, ISI Group analyst Omar Saad said in a note.

Apple added 2.7 percent to $455.72. The company is poised to boost its dividend by more than a half, according to analysts surveyed by Bloomberg, providing investors hit by a share slump with one of the highest yields in the U.S. technology industry. Chief Executive Officer Tim Cook, who a year ago this month reinstated a dividend and announced a $10 billion buyback, faces mounting pressure to take bolder steps to pay out more of Apple’s $137.1 billion in cash and investments. Investors including David Einhorn’s Greenlight Capital Inc. are pushing for more money as growth slows and competition from rivals such as Samsung Electronics Co. intensifies.

Hewlett-Packard gained 2.9 percent to $22.83, rising the most in the Dow. Morgan Stanley raised its rating on the stock to overweight, citing potential for the company to return more cash to investors. Hewlett-Packard may generate free cash flow of about $6.7 billion in the 2013 fiscal year, almost 35 percent more than the company’s $5 billion forecast, according to Katy Huberty, an analyst at Morgan Stanley.

At the close:

DJIA 14,452.10 -62.05 -0.43%

S&P 500 1,552.10 -8.60 -0.55%

NASDAQ 3,237.59 -11.48 -0.35%

00:30 Australia RBA Meeting's Minutes March

02:00 China Leading Index February 1,3% 1.3%

The yen declined versus all 16 major peers as Asian stocks rebounded from yesterday’s biggest drop in more than seven months, damping haven demand.

The currency weakened for the first time in four days against the dollar before a change of leadership at the Bank of Japan takes effect tomorrow amid expectations for policy easing.

The euro traded 0.6 percent from its lowest level this year before Cypriot lawmakers vote on how to spread the burden of a levy on bank depositors to help fund the nation’s bailout. Former European Central Bank Executive Board member Lorenzo Bini Smaghi said today the type of bailout used in Cyprus was unique and wouldn’t be applied to other nations needing international aid. A vote on the tax in the Cypriot parliament was delayed for a second day until today. The country’s banks will remain shut until March 21, a government official said.

New Zealand’s dollar fell after Finance Minister Bill English called the currency overvalued. New Zealand’s dollar declined as much as 0.3 percent to 82.42 U.S. cents, before trading 0.2 percent lower at at 82.54, after Finance Minister Bill English said in an interview with Bloomberg News that it was over-valued, and may correct when the U.S. economy picks up. He also said interest rates may stay lower for longer. Interest-rate swaps data compiled by Bloomberg show traders see an 88 percent chance the central bank will hold the benchmark rate steady at a record low of 2.5 percent through the Oct. 31 meeting, rather than raise it, up from 76 percent odds a week ago.

EUR / USD: during the Asian session, the pair traded in the range of $ 1.2935-65.

GBP / USD: during the Asian session, the pair traded in the range of $ 1.5080-15.

USD / JPY: during the Asian session, the pair rose to Y95.75.

Change % Change Last

GOLD 1,604.60 12.00 0.75%

OIL 93.74 0.29 0.31%

Change % Change Last

Nikkei 225 12,560.95 +179.76 +1.45%

Hang Seng 22,533.11 -86.07 -0.38%

S&P/ASX 200 5,120.24 +88.02 +1.75%

Shanghai Composite 2,278.4 +8.12 +0.36%

FTSE 100 6,457.92 -31.73 -0.49%

CAC 40 3,825.47 -18.56 -0.48%

DAX 8,010.7 -32.15 -0.40%

DJIA 14,452.10 -62.05 -0.43%

S&P 500 1,552.10 -8.60 -0.55%

NASDAQ 3,237.59 -11.48 -0.35%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,3074 +0,89%

GBP/USD $1,5106 -0,03%

USD/CHF Chf0,9460 +0,79%

USD/JPY Y95,28 +0,01%

EUR/JPY Y123,46 -0,88%

GBP/JPY Y143,91 -0,03%

AUD/USD $1,0400 -0,07%

NZD/USD $0,8263 -0,12%

00:30 Australia RBA Meeting's Minutes March

02:00 China Leading Index February 1,3% 1,3%

09:30 United Kingdom Retail Price Index, m/m February -0.4% +0.9%

09:30 United Kingdom Retail prices, Y/Y February +3.3% +3.3%

09:30 United Kingdom RPI-X, Y/Y February +3.3% +3.3%

09:30 United Kingdom Producer Price Index - Input (MoM) February +1.3% +1.6%

09:30 United Kingdom Producer Price Index - Input (YoY) February +1.8% +0.8%

09:30 United Kingdom Producer Price Index - Output (MoM) February +0.2% +0.3%

09:30 United Kingdom Producer Price Index - Output (YoY) February +2.0% +1.8%

09:30 United Kingdom HICP, m/m February -0.5% +0.7%

09:30 United Kingdom HICP, Y/Y February +2.7% +2.8%

09:30 United Kingdom HICP ex EFAT, Y/Y February +2.3% +2.2%

10:00 Germany ZEW Survey - Economic Sentiment March 48.2 47.9

10:00 Eurozone ZEW Economic Sentiment March 42.4 43.7

10:00 Eurozone Construction Output, m/m January -1.7%

10:00 Eurozone Construction Output, y/y January -4.8%

10:00 Eurozone ECB President Mario Draghi Speaks March

10:30 United Kingdom BOE Inflation Letter March

12:30 Canada Manufacturing Shipments (MoM) January -3.1% +0.5%

12:30 Canada Wholesale Sales, m/m January -0.9% +0.4%

12:30 U.S. Building Permits, mln February 0.925 0.925

12:30 U.S. Housing Starts, mln February 0.890 0.915

20:30 U.S. API Crude Oil Inventories March -1.4

21:45 New Zealand Current Account Quarter IV -4.42 -2.95