A look at economic developments around the globe

AP News
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Posted: Aug 02, 2011 2:47 PM
A look at economic developments around the globe

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

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MADRID _ Investors dealt Italy and Spain a battering Tuesday as the yields on their bonds struck euro-era highs amid mounting fears that an economic slowdown will hurt their chances of dodging Europe's spreading debt crisis.

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LONDON _ Stocks fell further as worries over the state of the U.S. economy capped any relief to the news that U.S. lawmakers have finally agreed to a package of measures to raise the U.S. debt ceiling.

In Europe, the FTSE 100 index of leading British shares closed down 1.0 percent while Germany's DAX fell 2.3 percent. The CAC-40 in France ended 1.8 percent lower.

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TOKYO _ In Asia, China's Shanghai Composite Index lost 0.9 percent and Hong Kong's Hang Seng shed 1.1 percent.

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TOKYO _ Expectations Japan will intervene in currency markets grew Tuesday as the yen's rise to a near record high threatened to stall economic recovery in the aftermath of the March earthquake.

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ATHENS, Greece _ Hundreds of striking Greek taxi drivers are demonstrating outside a government building in Athens against plans to open up their profession to more competition.

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RIYADH, Saudi Arabia _ The investment firm headed by Saudi billionaire Prince Alwaleed bin Talal said it signed a $1.2 billion deal with the Saudi Binladen Group to build the world's tallest tower.

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SEOUL, South Korea _ South Korea's central bank has purchased gold for the first time since the Asian financial crisis more than a decade ago as it seeks to diversify the country's increasing pot of foreign reserve holdings.

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BERLIN _ An industry group says German car exports were up 9 percent in July compared with a year earlier and domestic sales posted a similar increase as the country's economy booms.