A look at economic developments and activity in major stock markets around the world Tuesday:
PARIS _ The leaders of France and Germany called for greater economic discipline and unity among European nations, but they declined to take the expensive financial measures seen by many investors as the only way to halt the continent's spiraling debt crisis.
The Dow Jones industrial average fell, the euro slid against the dollar and key European markets edged lower in after-market trading after Chancellor Angela Merkel of Germany and French President Nicolas Sarkozy announced the results of their emergency talks.
Sarkozy called for a "new economic government" for Europe that would meet at least twice a year with European Union President Herman Van Rompuy as its head, but he offered few other details or indications that the body would have any real power.
Merkel and Sarkozy also called for all euro zone nations to enact constitutional amendments requiring balanced budgets. They said that they want the process completed by the summer of 2012, but it would almost certainly run into protracted political difficulties in many countries.
Both leaders said the moment was not right to replace 17 government bonds with a single one allowing weaker economies to borrow in cooperation with the powerhouse economies of France and Germany. A growing number of experts are calling for the eurobond as a way to prevent the unaffordable interest rates that have driven Greece, Ireland, and Portugal to seek bailouts from the eurozone countries and the International Monetary Fund.
New figures show slowing French and German growth, and the German government fears it would face higher borrowing costs and more risks if it had to borrow jointly with financially shaky nations.
FRANKFURT, Germany _ Economic growth in the 17 countries that use the euro sagged to 0.2 percent in the second quarter as a previously robust expansion in Germany almost ground to a halt.
The European slowdown is more downbeat news for the global economy, following disappointing second-quarter growth in the U.S., and it could make the continent's government debt crisis harder to deal with.
The eurozone's growth rate, measured quarter-on-quarter, was well short of the 0.8 percent recorded in the first quarter.
FRANKFURT, Germany _ Germany's economic growth nearly ground to a halt in the second quarter.
The German economy, which is Europe's largest and makes up 27 percent of eurozone output, expanded only 0.1 percent in the quarter. In the first three months of the year, the economy grew at a 1.3 percent pace.
Until now Germany's economy had been growing strongly as its companies tapped export markets, particularly in emerging countries. Its industrial prowess had in many ways cushioned it from a government debt crisis that's afflicting the 17 nations that use the euro.
Weak consumer spending and construction investment were largely behind the slowdown.
MILAN _ After an upbeat start to the trading week, European stocks stumbled after subdued German growth figures triggered fears about the global economy.
Germany reported almost no growth in the second quarter, following other disappointing readings from France and the United States.
Germany's DAX fell 0.5 percent and the CAC-40 in France dropped 0.3 percent, but Britain's FTSE 100 of leading U.K. shares closed up 0.1 percent.
TOKYO _ Japan's Nikkei 225 index rose 0.2 percent, South Korea's Kospi jumped 4.8 percent following a public holiday, Hong Kong's Hang Seng fell 0.2 percent and China's Shanghai Composite Index lost 0.7 percent.
CANBERRA, Australia _ European governments need to restructure their economies to restore the confidence of financial markets as the global economy moves into a new danger zone, World Bank President Robert Zoellick said.