European shares were called to open lower on Tuesday after Cyprus said it urgently needed European financial aid to shore up its banking system, a step that would make it the fifth euro zone economy to seek help.
The FTSE was called to open 13 points lower at 5419, the DAX was expected to open 31 points lower at 6110 and the CAC 40 was see opening 16 points lower at 3027.
The move came as Italian bond yields inched up on Monday, raising concerns that markets were turning their gaze in the direction of the Italian economy, judged to be the next sick man of Europe, following the announcement of a bailout loan for Spain over the weekend.
The Wall Street Journal reported that the size of any bailout for Cyprus would amount to no more than 3 to 4 billion euros ($3.8 to $5 billion)—a relatively small amount that wouldn’t place serious strain on Europe.
But Cyprus's request on Monday could send a further signal that the feared contagion was continuing to spread through the euro zone. Greece, Ireland and Portugal are already in bailout programs.Page 1 of 5 | Next Page