A look at economic developments around the globe

AP News
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Posted: Nov 14, 2011 1:01 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 _ Italy's premier-designate Mario Monti began talks to create a new government of non-political experts tasked with overhauling an ailing economy that would keep market fears over the country from threatening the existence of the euro.

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ATHENS, Greece _ Greece's junior coalition leader defied European demands to provide written support for a massive new debt relief deal, leaving the country's loan lifeline in doubt hours before its new government was to outline its policy platform.

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LONDON _ European markets fell as initial relief over new governments in Greece and Italy gave way to the reality that those countries still face tremendous obstacles.

In France, the CAC-40 fell 1.3 percent, while Germany's DAX was down 1.2 percent. The FTSE index of leading British shares fell 0.5 percent.

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TOKYO _ In Asia, Japan's Nikkei 225 index added 1.1 percent. Hong Kong's Hang Seng surged 2 percent and South Korea's Kospi climbed 2.1 percent.

On mainland China, the benchmark Shanghai Composite Index gained 1.9 percent while the smaller Shenzhen Composite Index jumped 2.5 percent. Benchmarks in Singapore, Australia and Indonesia were also higher.

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TOKYO _ Japan's economy grew for the first time in four quarters in a comeback from the earthquake and tsunami disaster that already faces multiple global headwinds.

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PARIS _ The interest rate France pays to borrow money is rising again _ and along with it fears that the country will lose its cherished AAA credit rating.

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BERLIN _ The European Central Bank says it lowered its purchases of government bonds last week to $6.2 billion from $13 billion a week earlier, despite the turmoil that had enveloped Italy's bond markets.

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BUDAPEST, Hungary _ Prime Minister Viktor Orban's spokesman says Hungary will not seek a credit line with the International Monetary Fund, despite concerns that the country's credit rating is close to a downgrade to junk status.

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