Deal causes shares to tumble

Global stock markets fell yesterday as concerns over European sovereign debt returned to the forefront after the eurozone’s decision on partially funding a bailout of Cyprus by taxing bank deposits.

The move hit confidence in the European banking sector, sparking concerns that the eurozone might go after depositors in other eurozone nations. The euro and bonds of troubled European sovereign debtors also fell.

The declines gave US equities investors the opportunity to lock in profits after an extended rally last week, but losses were limited as buyers came in after the early selling.