Stock markets fall on Cyprus bank-deposits levy fears

Stock markets fell sharply today on fears that an unprecedented levy on bank deposits in Cyprus will plunge Europe back into crisis.

The FTSE 100 Index, which has been trading at a five-year high above 6500 in recent days, slumped 100 points or 1.5%, while Japan’s Nikkei ended the session more than 2.5% lower. Banks were among the biggest fallers in London.