A look at economic developments around the globe

AP News
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Posted: Jun 22, 2011 1:07 PM
A look at economic developments around the globe

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

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ATHENS, Greece _ One vote down, a tougher one ahead: The Greek prime minister won a confidence vote but immediately launched into his next political battle _ getting new austerity measures passed by Parliament to avoid a national default.

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BERLIN _ A full-scale restructuring of Greek debt would have "completely uncontrollable" effects on financial markets and could threaten other countries' stability, German Chancellor Angela Merkel warned.

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LONDON _ The Greek government's victory in a confidence vote helped steady markets before an interest rate decision from the Federal Reserve, though a shock profit warning from Dutch lighting and electronics firm Philips kept sentiment in check.

The FTSE 100 index of leading British shares closed down a tad, while Germany's DAX fell 0.1 percent. The CAC-40 in France ended 0.2 percent lower.

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TOKYO _ In Asia, Japan's Nikkei 225 index gained 1.8 percent, while Hong Kong's Hang Seng ended marginally higher.

The benchmark Shanghai Composite Index edged 0.1 percent higher while the Shenzhen Composite Index was little changed.

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BEIJING _ China's surging inflation should rise again this month after floods damaged crops and pushed up food costs, the government said.

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LONDON _ The newest member of the Bank of England's rate-setting Monetary Policy Committee has voted with the majority to keep the key rate at an all-time low of 0.5 percent, reinforcing market expectations that borrowing costs may not rise this year.

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