Various news agencies are reporting that an acceptable resolution to the current crisis in Cyprus can/wll be reached in a matter of hours.
"There is cautious optimism that in the next few hours we may be able to reach an agreed platform so parliament can approve these specific measures which will be consistent with the approach, the framework and the targets agreed at the last Eurogroup," deputy leader of Cyprus's Democratic Rally party Averof Neophytou told reporters. – Source
Reuters also reported that Cyprus had agreed with Greece on a takeover on the Greek units of Cypriot banks. The news sent European shares higher in mid-morning trade. Jane Foley, senior currency strategist at Rabobank, told CNBC that she was surprised at the relative calm in markets compared to last year when a Greek exit from the euro looked likely. Perhaps it has more to do with the relative difference in the scope of the money we are dealing with in my own opinion or speaks to the relative insignificance of Cyprus as a contributor to the EU in general.
Crisis talks and negotiations are ongoing as Parliament was called in for special emergency meetings. We could also see a vote sometime today on some or all of the proposed measures.
It appears the equity markets like the news but then again, given the bi-polar nature of the markets, it doesn’t take much to swing them either way.
As per the Guardian and The Telegraph who are providing updated progress on the events as they break, the negotiations don’t seem to be going as smoothly as CNBC is reporting as they continue to care about only cheering the stock market gains.
