A look at economic developments around the globe

AP News
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Posted: Jan 17, 2012 3:18 PM
A look at economic developments around the globe

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

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ATHENS, Greece _ Greece resumed talks with international debt inspectors, with time running out before it defaults on its debts. That might trigger a chain of events that could end the euro, the single European currency.

BEIJING _ China appears on track to avoid a significant economic slowdown, with possible global repercussions, after the growth of its economy eased but remained a robust 8.9 percent in the last quarter of 2011.

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BERLIN _ A closely watched survey shows German investor sentiment has risen strongly in January, indicating that economic activity in the country should stabilize over the next six months rather than deteriorate.

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LONDON _ Markets brushed aside fears that Greece may be heading for a devastating debt default and rallied on China's growth, which eased concerns of an major slowdown in the world's second-largest economy.

Germany's DAX closed 1.8 percent higher while the CAC-40 in France rose 1.4 percent. The FTSE 100 index of leading British shares ended 0.7 percent higher.

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TOKYO _ In Asia, Hong Kong's Hang Seng soared 3.2 percent while Japan's Nikkei 225 index rose 1.1 percent.

China's benchmark Shanghai Composite Index jumped 4.2 percent, the most in over two years. The Shenzhen Composite Index of China's second, smaller exchange, surged 5.1 percent.

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MADRID _ Spain successfully auctioned off $6.21 billion in short-term debt at sharply reduced interest rates in the first test of investor sentiment since last week's S&P downgrade of its credit rating.

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LONDON _ Inflation in Britain fell sharply in December, official figures showed Tuesday, opening the door for more monetary stimulus from the Bank of England.

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FRANKFURT, Germany _ Europe's banks parked just over half a trillion euros at the European Central Bank on Monday in another sign that they remain concerned about lending to each other.

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ATHENS, Greece _ Strikes and demonstrations against Greek austerity measures hit Athens, as international debt inspectors returned to decide whether the country's reforms are strong enough for it to secure a vital bailout and avoid default.

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LISBON, Portugal _ Portugal is to cut vacation days, introduce more flexible working hours and cut compensation for layoffs in a package of labor reforms aimed at reversing the country's steep economic decline, officials said.

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TORONTO _ Canada's central bank left its key interest rate unchanged as the sluggish global economy weighs on growth in Canada.

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