Shares fall after Cyprus rally

Markets finished the day lower than they began amid fears of further levies on banks. The decline, most notable in the financial sector, was prompted by the words of Dutch Finance Minister Joeren Dijsselbloem, head of the Eurogroup of eurozone finance ministers.

Dijsselbloem, who last week said there would be no need to impose a levy in other eurozone countries, on Monday said that the Cyprus outcome could serve as a model for other countries in need of an emergency bailout to avoid defaulting on their debts.

"Taking away the risk from the financial sector and taking it on to the public shoulders is not the right approach," Dijsselbloem said in an interview with the Reuters news agency and the British Financial Times newspaper. "The response will no longer automatically be: we'll come and take away your problems," he said.

Under the bailout scheme, uninsured deposits above 100,000 euros ($128,000) are to be frozen and used to resolve debts and recapitalize the Bank of Cyprus.

Britain's FTSE 100 index of leading companies ended the day down 0.22 percent to 6,378.38 points, having traded higher for most of Monday.

In Frankfurt, Germany's DAX 30 dropped by 0.51 percent to 7,870.90 points, while France's CAC 40 nosedived 1.12 percent to 3,727.98 points.

rc/kms (AFP, dpa, AP, Reuters)