August 17, 2011
Plans for a new Robin Hood-style tax on financial dealings hit shares in stock exchange operators on Wednesday, as the financial markets balked at the latest proposals to rescue the eurozone.
The prospect of tax rate harmonisation and a new financial transaction tax, as pledged by German chancellor Angela Merkel and French president Nicolas Sarkozy, did not ease fears over the stability of the region. The FTSE 100 fell 77 points in early trading to 5279, with other European markets also losing ground.
Shares in the FTSE 250-listed London Stock Exchange fell by 6% at the start of trading, with Germany’s Deutsche Bourse and pan-European exchange NYSE Euronext suffering similar falls. The three exchanges would all be affected if traders were forced to pay a small fee every time they bought and sold stocks or currencies.