Summary Cyprus is closing its bank Laiki and raiding big deposits in it, as well as in Bank of Cyprus.
LONDON (AP) - Sentiment in the world s markets remained fragile Wednesday as investors awaited the details of the capital controls Cyprus is expected to introduce when its banks reopen.
The country s banks, which have been closed for the best part of two weeks, are due to start doing business again on Thursday following an international bailout agreement that s caused jitters around the world but particularly in Europe over the safety of deposits. Under the terms of the bailout, Cyprus is closing its second-largest bank Laiki and raiding big deposits in it, as well as in Bank of Cyprus.
In Europe, the FTSE 100 index of leading British shares was down 0.5 percent at 6,366 while Germany s DAX fell 0.8 percent. The CAC-40 in France was 1.4 percent lower at 3,698.
The euro also remained under pressure trading 0.5 percent lower at $1.2793. The currency has been on the slide since a top European official said the Cyprus bailout may be a model for the future.
Though others have since sought to dismiss that idea, the thought has now been embedded into investors minds.
Wall Street was poised for a retreat at the open, with both Dow futures and the broader S&P 500 futures 0.4 percent lower.
Earlier, Asian stocks fared better as they rose in the slipstream of Tuesday s advance in U.S. stock markets, which saw the S&P 500 edge up towards an all-time high and the Dow rise to a new record.
Japan s Nikkei rose 0.2 percent to 12,493.79 while Hong Kong s benchmark Hang Seng index rose 0.6 percent to close at 22,464.82. In mainland China, the Shanghai Composite Index advanced 0.2 percent to 2,301.26 while the smaller Shenzhen Composite rose 0.3 percent to 955.24.
Oil prices tracked equities and were falling as European stocks dipped benchmark crude for May delivery fell 60 cents to $95.74 a barrel.
