LONDON, March 25 (Reuters) - European shares fell on Monday,
led lower by financial stocks, as relief over a Cyprus bailout
faded after the Dutch Finance Minister said the stern deal could
set a new template for the region.
The pan-European FTSEurofirst 300 index
provisionally closed down 0.1 percent at 1,188.09 points, having
been up 0.9 percent at one stage, while the euro zone's
blue-chip Euro STOXX 50 index fell 1.1 percent to
Dutch Finance Minister Jeroen Dijsselbloem, who heads the
Eurogroup of euro zone finance ministers, told Reuters and the
Financial Times that the Cyprus rescue represented a new
template for resolving euro zone banking problems and other
countries may have to restructure their banking sectors.
This raised worries that other debt-ridden countries with
troubled banks may face similarly punitive measures as Cyprus,
which agreed to close down its second-largest bank and inflict
heavy losses on big depositors.
"The action taken sets a dangerous precedent. I just think
there's still a little sense of unease," said Berkeley Futures
associate director Richard Griffiths.
Griffiths said clients were looking to buy "put" options on
the German DAX equity index, which give the right to
sell an index in the future and are often used on expectations
of a market fall.
He said investors had taken DAX "puts" due to mature in
April with a strike price of 7,700 points - implying that some
investors saw a 2 percent fall on the DAX in the coming month.