European stocks slide on Cyprus bailout deal 

(MENAFN - AFP) Europe's main stock markets sank on Monday as investors reacted to weekend news that Cyprus plans to tax bank depositors as part of a controversial bailout deal.London's benchmark FTSE 100 index of top companies fell by 0.96 percent to 6,427.38 points, Frankfurt's DAX 30 shed 1.19 percent to 7,946.91 points and in Paris the CAC 40 lost 1.44 percent to stand at 3,788.74.Asian equities also fell heavily in earlier trade, as the plan by Cyprus to tax bank deposits raised fresh concerns the eurozone debt crisis could reignite.Elsewhere, Madrid's IBEX 35 shares index dived 2.18 percent and Milan's FTSE MIB sank 2.27 percent in value.In foreign exchange activity, the European single currency plunged to 1.2882 in earlier Asian deals to strike the lowest point since December 10, 2012.The euro later stood at 1.2963, down from 1.3075 late on Friday in New York.Gold prices meanwhile rose to 1,603.94 an ounce on the London Bullion Market from 1,595.50 on Friday."If European policymakers were looking for a way to undermine the public trust that underpins the foundation of any banking system they could not have done a better job," said CMC Markets analyst Michael Hewson.Terms for a desperately-needed 10-billion-euro (13 billion) bailout for Cyprus include a levy on all deposits in the island's banks.Deposits of more than 100,000 euros will be hit with a 9.9 percent charge, and 6.75 percent for anything below that threshold. The proposal must still be approved by parliament."The dawn raid on the previously sacrosanct savings of depositors will draw unwanted attention to the struggling peripheral banks throughout the eurozone," added analyst Mike McCudden at online brokerage Interactive Investor."The move has sent a warning shot across the region and threatens to undo much of the work done over the past year to restore investor confidence.He added: "The move has sent out entirely the wrong message to investors as they now take the reins in guiding the eurozone out of the mire."Cyprus is the fourth nation to fall victim to the eurozone debt crisis, which has already resulted in enormous EU/IMF bailout packages for Greece, Ireland and Portugal.Back in June, meanwhile, Spain looked as if it too would need a rescue as the collapse of its banking system, largely down to a burst property bubble, forced the government into a corner.Madrid however insisted that it was able to get by without a full rescue, seeking instead a credit line of 100 billion euros to help its banks.