Thursday, July 12, 2012

A look at economic developments around the globe

A look at economic developments and activity in major stock markets around the world Thursday:

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MADRID - The Spanish government's latest round of austerity measures failed to reassure investors and markets as the country's borrowing costs started to rise again.

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LONDON - Global stock markets declined on fears growth may slow in China and after U.S. Federal Reserve minutes indicated the central bank may not move as quickly as hoped to stimulate the country's economy.

Britain's FTSE 100 closed down just shy of 1 percent. France's CAC-40 shed 0.7 percent, while Germany's DAX fell 0.53 percent.

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TOKYO - In Asia, Japan's Nikkei 225 index fell 1.5 percent, while Hong Kong's Hang Seng dropped 2 percent.

South Korea's Kospi slid by 2.2 percent. China's Shanghai Composite gained 0.5 percent.

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FRANKFURT, Germany - Banks have drastically cut the amount of money they hold overnight at the European Central Bank after it cut the interest rate on those deposits to zero.

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DUBLIN, Ireland - Ireland is making good progress in its attempts to wean itself off its international bailout and start paying its own way, according to the country's debt inspectors.

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LISBON, Portugal - Portuguese doctors are staging a 48-hour strike to protest austerity measures they say are weakening the country's publicly funded health service.

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SYDNEY - Australia's unemployment rate hit 5.2 percent in June, up a tenth of a percentage point from the month before.

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MANILA, Philippines - The Asian Development Bank cut growth forecast for developing Asia, citing Europe's worsening financial crisis, sluggish recovery in the U.S. and slower growth in China and India.

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SEOUL, South Korea - South Korea's central bank unexpectedly lowered its key interest rate, in an attempt to guard Asia's fourth-largest economy from Europe's persistent debt woes and slowing growth in China.

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