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Australian Stock Market Report – Afternoon 3-20-13

Afternoon Market Report

(17:00 AEDT)

The lack of resolution in relation to the Cypriot bailout remained the main influence on regional markets on Wednesday. The Cypriot parliament has voted against levy on bank deposits by a margin of 36 to 0 with 19 members abstaining. Eurozone officials remain defiant that Cyprus must contribute to its rescue. Germany has remained steadfast, re-iterating that no support will be offered until Cyprus meets the terms on the table at present. Cypriot banks and the stock exchange will remain closed until Thursday. The ECB repeated its commitment to the provision of liquidity as required within the existing rules. The main risk lies in the ECB withdrawing this support, which would see a collapse of the Cypriot banking system. The risk to the broader Euro banking system arises from Cypriot banks having lent an amount equivalent to around 4% of Greece's GDP to Greek banks. German and French banks have exposure to Greek banks.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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