A look at economic developments around the globe

AP News
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Posted: Oct 27, 2011 2:10 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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BRUSSELS _ European leaders clinched a deal they hope will mark a turning point in their two-year debt crisis, agreeing after a night of tense negotiations to have banks take bigger losses on Greece's debts and to boost the region's weapons against the market turmoil.

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LONDON _ Global stock markets soared as investors waded into riskier assets, emboldened by EU leaders' pre-dawn agreement to slash Greece's massive debts and use their bailout fund to contain any further turmoil.

Britain's FTSE climbed 2.9 percent. Germany's DAX jumped 5.4 percent and France's CAC-40 gained 6.3 percent.

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TOKYO _ In Asia, Japan's Nikkei 225 index rose 2 percent. South Korea's Kospi added 1.5 percent. Hong Kong's Hang Seng gained 3.3 percent. Australia's S&P/ASX 200 jumped 2.5 percent.

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ATHENS, Greece _ Shares on Greece's stock market closed sharply up following a debt deal reached by European leaders that the country's finance minister described as a new starting point for the country.

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As Europe's leaders struggle toward a solution to its debt crisis, hopes are growing that cash-rich China will take a major role in a rescue _ expectations that are likely to be dashed.

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ROME _ Italian union leaders vowed to call strikes if Premier Silvio Berlusconi's government acts on its promise to make it easier to fire workers as a way to convince the European Union it is serious about reviving the country's anemic growth.

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BERLIN _ An official estimate shows that Germany's annual inflation rate slipped to 2.5 percent in October after hitting a three-year high the previous month.

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NICOSIA, Cyprus _ Cyprus' two largest banks which are heavily exposed to Greece say they can cover needed capital buffers and are moving to boost their liquidity.

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SHANGHAI _ China's chronic fuel shortages are worsening with the onset of winter, as output lags behind surging demand following price cuts that are worsening refiners' losses.

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TOKYO _ Japan's central bank kept its key interest rate at nearly zero and will expand the size of an asset buying program to lend stronger support to the economy.

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BEIJING _ Hundreds of migrant small business owners in an eastern Chinese town have protested over a tax dispute, some of them torching vehicles, in the latest unrest resulting from growing economic pressure and anger over the unfair treatment of migrants.

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JOHANNESBURG _ Young South Africans brought their frustration over poverty and joblessness to the streets, responding to a call by the tough-talking youth leader of the governing African National Congress who has clashed with older party leaders over economic policy.

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CAIRO _ Moody's Investors Service says it has cut Egypt's government bond rating by one notch, citing the country's weak economy, political instability and declining foreign reserves.

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TBILISI, Georgia _ Georgia has accepted a Swiss proposal that could open the way for Russia to join the World Trade Organization.

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WARSAW, Poland _ Hundreds of business people from Poland and China are meeting at a major conference to establish ties and develop wide-ranging trade cooperation.

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SYDNEY _ Australia's stock market was halted for several hours following a technical glitch.

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