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.

Перед открытием рынка фьючерс S&P упал (-0.82%) до уровня 1540.75, фьючерс NASDAQ потерял 0.79% до уровня 2768.50 пункта.

U.S. stock-index futures fell as euro-area leaders imposed a levy on Cypriot bank deposits to cut the cost of a bailout, sparking concern the measure may one day be used in the bigger economies of Spain or Italy.

Global Stocks:

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European (SXXP) stocks tumbled the most in more than two weeks after the euro area forced Cyprus to adopt a levy on bank deposits, prompting concern that the single currency’s debt crisis will reignite. U.S. index futures and Asian shares also sank.

The Stoxx Europe 600 Index fell 0.9 percent to 294.82 at 8:47 a.m. in London, its biggest drop since March 1. Cypriot and Greek stock markets are closed for a holiday today.

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. Cyprus’s President, Nicos Anastasiades, will try to persuade lawmakers to back the plan. The levy enabled the euro area to lower its bailout of the country to 10 billion euros ($13 billion) from an original figure of about 17 billion euros.

Ericsson lost 1.8 percent to 83.85 kronor after agreeing to wind down the ST-Ericsson joint venture and divide the assets. The Swedish and Italian companies failed to find a buyer for the business. STMicroelectronics will incur cash costs of $350 million to $450 million. The Italian company said the charges were lower than it had estimated in January. STMicroelectronics climbed 1.8 percent to 5.96 euros.

Commerzbank declined 1.7 percent to 1.18 euros. The stock was cut to neutral from outperform at Credit Suisse.

BHP Billiton, the world’s biggest mining company, retreated 1.1 percent to 2,042 pence.

Marks & Spencer Group Plc surged 5.2 percent to 392 pence. 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. Reuters cited an anonymous source as saying that the investor is not considering a bid.

At the moment:

FTSE 100 6,439.36 -50.29 -0.77%

CAC 40 3,794.49 -49.54 -1.29%

DAX 7,953.74 -89.11 -1.11%

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.

Asian stocks rose, with the regional benchmark index poised to advance for a fourth week, after U.S. jobless claims unexpectedly dropped and Japan’s upper house confirmed Haruhiko Kuroda as central bank governor.

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%

Honda Motor Co., a Japanese carmaker that gets 44 percent of sales from North America, gained 2.6 percent.

Sony Corp. surged 11 percent in Tokyo after Daiwa Securities Group Inc. recommended buying shares of the consumer electronics maker.

China Southern Airlines Co. advanced 4.4 percent to pace gains among Chinese carriers after Shanghai Securities News reported plans to build more airports as demand grows in the world’s second-largest economy.

European (SXXP) stocks declined from a 4 1/2-year high, as European Union leaders eased constraints on national budgets amid a deepening euro-area recession, while confidence among American consumers unexpectedly slid in March.

The Stoxx Europe 600 Index fell 0.4 percent to 297.46 at the close of trading. The gauge added 0.7 percent this week, for a fourth straight weekly advance, its longest winning streak since December.

National benchmark indexes fell in all of the western European markets except Switzerland.

FTSE 100 6,489.65 -39.76 -0.61% CAC 40 3,844.03 -27.55 -0.71% DAX 8,042.85 -15.52 -0.19%

In the U.S., the Thomson Reuters/University of Michigan preliminary sentiment index for March fell to 71.8 from 77.6 in February. The gauge was projected to increase to 78, according to the median estimate of economists.

Volkswagen’s preferred shares declined 2.6 percent to 160.30 euros. Waddell & Reed sold 914 million euros ($1.19 billion) of the stocks, after they touched a four-month low yesterday on the carmaker’s 2013 outlook. The 5.78 million shares were sold for 158 euros each, a 4 percent discount to yesterday’s close, Deutsche Bank AG said.

Vivendi (VIV) lost 3.3 percent to 16.10 euros. The company halted the planned sale of GVT after failing to get a satisfactory bid for the division, which had been valued at 5.2 billion euros.

Ingenico, a French provider of payment terminals and services, declined 2.9 percent to 44.64 euros. Safran’s Morpho will sell 6.6 million Ingenico shares, or a 12.57 percent stake, in a private placement, while retaining a 10.2 percent stake.

Banca Popolare dell’Emilia Romagna Scarl jumped 10 percent to 6.01 euros. Exane BNP Paribas raised its target price for the shares by 5 percent to 8.30 euros, citing the benefits of the bank’s funding structure, which is based on retail deposits.

Major stock indexes rose to session lows, but still finished trading in the red. For the week DOW index rose 0,74%, Nasdaq rose 0,09%, S & P500 gained 0.55%.

U.S. stocks fell, after the Standard & Poor’s 500 Index moved within two points of its record high yesterday, as a report showed consumer confidence unexpectedly fell in March.

Equities declined today as the Thomson Reuters/University of Michigan preliminary sentiment index for March fell to 71.8 from 77.6 in February. The gauge was projected to increase to 78, according to the median estimate of 67 economists surveyed by Bloomberg.

Industrial production rose more than forecast in February as U.S. factories turned out more business equipment and motor vehicles. Output at factories, mines and utilities climbed 0.7 percent, exceeding the median projection in a Bloomberg survey, figures from the Federal Reserve showed today in Washington. Separate data showed manufacturing in the New York region expanded for a second month in March and industry managers grew more optimistic about the future.

Most components of DOW index closed in minus. Shares of Bank of America Corporation (BAC, +4.00%) advanced more than other components. Shares of JPMorgan Chase & Co. (JPM, -1.98%) fell more than other components

Most sectors of the S&P closed in minus. Most fell showed technology sector (-0.5%). Most growts showed financial sector (+0.9%).

At the close:

Dow -23.19 14,515.95 -0.16%

Nasdaq -9.86 3,249.07 -0.30%