A look at economic developments around the globe

AP News
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Posted: Oct 31, 2011 1:49 PM
A look at economic developments around the globe

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

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ROME _ Market pressures grew on Italy, the debt crisis' new front, due to fears Premier Silvio Berlusconi might be unable to enact economic reforms he promised to fellow European leaders in exchange for help to protect his country from financial turmoil.

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TOKYO _ The dollar jumped about 5 percent against the yen after Japan intervened to weaken its currency, whose appreciation has threatened the country's tentative recovery from the tsunami disaster.

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LONDON _ Global stocks fell sharply on concerns about Italy's ability to tame its colossal debts and the news that a U.S. brokerage firm filed for bankruptcy over its potential exposure to bad European government debt.

In Europe, the FTSE 100 index of leading British shares closed down 2.8 percent while Germany's DAX fell 3.2 percent. The CAC-40 in France ended 3.2 percent lower while the Milan exchange closed down 3.8 percent.

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TOKYO _ In Asia, mainland Chinese shares were mixed. The benchmark Shanghai Composite Index snapped a five-session winning streak by falling 0.2 percent, while the Shenzhen Composite Index added 0.5 percent.

Hong Kong's Hang Seng slipped 0.7 percent and South Korea's Kospi fell 1.1 percent.

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VIENNA _ China remains confident Europe can solve its crippling debt crisis even though it continues to balk at requests for it to use its financial firepower.

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LONDON _ Inflation in the 17 countries that use the euro remained at 3 percent in October, official figures showed, likely reinforcing market expectations that the European Central Bank will keep interest rates on hold at its monthly policy meeting this week.

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MADRID _ Spain's economy growth ground to a halt in the third quarter, the country's central bank said, further raising doubts over the government's deficit-reduction goal.

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BUENOS AIRES, Argentina _ Argentina has launched a new crackdown on capital flight and tax evasion. It is requiring people who want to buy dollars to first prove that they're up to date on their taxes.

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TORONTO _ The operator of Canada's largest stock exchange has decided to support a $3.8 billion takeover bid by a group of Canadian banks, insurance companies and pension funds.

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