Investing.com - U.S. stocks fell on Thursday as investors avoided equities and snapped up safe-haven dollar and yen positions amid growing uncertainty over whether Cyprus will be able to secure a bailout to protect its banking sector.
Weak European manufacturing data overshadowed good news on the labor front at home.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.62%, the S&P 500 index ended down 0.83%, while the Nasdaq Composite index fell 0.97%.
Cyprus's parliament rejected a E.U. proposal to slap taxes on bank deposits, though the country must still find ways to raise EUR5.8 billion if it wishes to tap a EUR10 billion financial assistance package arranged by its European neighbors and the International Monetary Fund
A bank holiday remains in effect until Monday, which gives European policymakers more time to find a way out of the crisis.
On Cypriot central banker outlined a plan that would protect banking accounts holding less than EUR100,000 though markets ignored the proposal.
The European Central Bank has said it will ensure that liquidity flows into the island nation's banking system, though investors remain out of risk-on assets throughout the day until clarity returns.
Disappointing data out of Europe dampened spirits as well.
The eurozone's manufacturing purchasing managers’ index hit a three-month low of 46.6 in March from 47.9 in February, defying expectations for a gain to 48.2, according to London-based Markit Economics.
The eurozone services PMI, meanwhile, dropped to a five-month low of 46.5 in March from 47.9 in February, also defying expectations for a gain to 48.2, Markit added.
Markit also reported that Germany’s manufacturing PMI fell to 48.9 in March from 50.3 the previous month, missing market calls for a 50.5 reading while the country’s service-sector expanded at the slowest rate in four months.
The French manufacturing PMI came in at 43.9 in March, unchanged from February’s reading, while service sector activity in France fell to a 49-month low of 41.9.
Meanwhile in the U.S., fewer people filed for initial jobless claims last week than the week before.
Solid data out of the U.S. failed to seriously raise spirits on Thursday.
The U.S. Department of Labor reported earlier that the number of people filing for initial jobless benefits last week rose by 2,000 to a seasonally adjusted 336,000, below expectations for an increase of 8,000 to 342,000.
Manufacturing data in the U.S. beat expectations as well.
The Federal Reserve Bank of Philadelphia reported that manufacturing activity in the bank's jurisdiction expanded at its fastest pace in three months in March, with the Philly Fed manufacturing index rising to 2.0 from February’s reading of -12.5, far outpacing market calls for a -2.0 reading.
Elsewhere, the National Association of Realtors, meanwhile, reported that existing home sales rose 0.8% to 4.98 million units in February, the highest level in three years.
Leading Dow Jones Industrial Average performers included Coca-Cola, up 0.53%, Verizon Communications, up 0.43%, and UnitedHealth Group, up 0.35%.
The Dow Jones Industrial Average's worst performers included Cisco Systems, down 3.83%, Hewlett-Packard, down 2.66%, and Bank of America, down 1.64%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 0.92%, France's CAC 40 fell 1.43%, while Germany's DAX 30 finished down 0.87%. Meanwhile, in the U.K. the FTSE 100 finished down 0.69%.
Weak European manufacturing data overshadowed good news on the labor front at home.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.62%, the S&P 500 index ended down 0.83%, while the Nasdaq Composite index fell 0.97%.
Cyprus's parliament rejected a E.U. proposal to slap taxes on bank deposits, though the country must still find ways to raise EUR5.8 billion if it wishes to tap a EUR10 billion financial assistance package arranged by its European neighbors and the International Monetary Fund
A bank holiday remains in effect until Monday, which gives European policymakers more time to find a way out of the crisis.
On Cypriot central banker outlined a plan that would protect banking accounts holding less than EUR100,000 though markets ignored the proposal.
The European Central Bank has said it will ensure that liquidity flows into the island nation's banking system, though investors remain out of risk-on assets throughout the day until clarity returns.
Disappointing data out of Europe dampened spirits as well.
The eurozone's manufacturing purchasing managers’ index hit a three-month low of 46.6 in March from 47.9 in February, defying expectations for a gain to 48.2, according to London-based Markit Economics.
The eurozone services PMI, meanwhile, dropped to a five-month low of 46.5 in March from 47.9 in February, also defying expectations for a gain to 48.2, Markit added.
Markit also reported that Germany’s manufacturing PMI fell to 48.9 in March from 50.3 the previous month, missing market calls for a 50.5 reading while the country’s service-sector expanded at the slowest rate in four months.
The French manufacturing PMI came in at 43.9 in March, unchanged from February’s reading, while service sector activity in France fell to a 49-month low of 41.9.
Meanwhile in the U.S., fewer people filed for initial jobless claims last week than the week before.
Solid data out of the U.S. failed to seriously raise spirits on Thursday.
The U.S. Department of Labor reported earlier that the number of people filing for initial jobless benefits last week rose by 2,000 to a seasonally adjusted 336,000, below expectations for an increase of 8,000 to 342,000.
Manufacturing data in the U.S. beat expectations as well.
The Federal Reserve Bank of Philadelphia reported that manufacturing activity in the bank's jurisdiction expanded at its fastest pace in three months in March, with the Philly Fed manufacturing index rising to 2.0 from February’s reading of -12.5, far outpacing market calls for a -2.0 reading.
Elsewhere, the National Association of Realtors, meanwhile, reported that existing home sales rose 0.8% to 4.98 million units in February, the highest level in three years.
Leading Dow Jones Industrial Average performers included Coca-Cola, up 0.53%, Verizon Communications, up 0.43%, and UnitedHealth Group, up 0.35%.
The Dow Jones Industrial Average's worst performers included Cisco Systems, down 3.83%, Hewlett-Packard, down 2.66%, and Bank of America, down 1.64%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 0.92%, France's CAC 40 fell 1.43%, while Germany's DAX 30 finished down 0.87%. Meanwhile, in the U.K. the FTSE 100 finished down 0.69%.