A look at economic developments around the globe

AP News
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Posted: Sep 08, 2011 2:34 PM
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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FRANKFURT, Germany _ European Central Bank head Jean-Claude Trichet warned there are increasing risks for the eurozone's waning economic recovery and less chance of inflation _ clear signals the bank is done raising interest rates for some time.

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LONDON _ Soft U.S. jobs figures kept stock gains in check on Thursday despite hopes that global policymakers are readying measures to shore up economic growth. The euro, meanwhile, fell to its lowest level since July after the European Central Bank's chief indicated borrowing costs would not rise anytime soon.

In Europe, the FTSE 100 index of leading British shares closed 0.4 percent higher while Germany's DAX rose 0.1 percent. The CAC-40 in France was 0.4 percent higher.

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TOKYO _ In Asia, Japan's Nikkei 225 index rose 0.3 percent as a softening yen helped Japan's exporters.

South Korea's Kospi rose 0.7 percent, benefiting from a decision by the country's central bank to leave its benchmark interest rate unchanged for a third month. Higher interest rates generally drag on stocks by making them a potentially less attractive investment.

Hong Kong's Hang Seng fell 0.7 percent as did shares in mainland China while the Shenzhen Composite Index lost 1 percent.

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PARIS _ The U.S. and rich nations in Europe need to take action to shore up confidence in their economies as their recoveries are set to stagnate or go into reverse, the Organization for Economic Cooperation and Development said.

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BERLIN _ Finance Minister Wolfgang Schaeuble urged lawmakers to support the latest euro rescue package as Germany's parliament opened debate on the measures.

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TAIPEI, Taiwan _ Fitch Ratings said that China's credit risk has increased because local governments have become heavily indebted, with a lack of disclosure by financial institutions compounding the problem.

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SEOUL, South Korea _ South Korea's central bank froze its benchmark interest rate for a third month as global economic uncertainty outweighed concerns over accelerating inflation.

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ROME _ The U.N. food agency says world food prices remained virtually unchanged last month, but that cereal prices rose amid concerns that production won't satisfy demand.

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ATHENS, Greece _ Greek taxi drivers, hospital doctors and dentists walked off the job at the start of a new round of anti-austerity protests by professional groups and labor unions in the debt-ridden country.

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