A look at economic developments around the globe

AP News
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Posted: Jun 04, 2012 4:44 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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MADRID _ Spain was under pressure to reveal what it intends to do about its troubled banking sector as the government's borrowing rates in the bond markets stayed at worryingly high levels, reflecting investor concern that Madrid may need to ask for foreign aid.

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LONDON _ World markets dropped, extending heavy losses last week, as another setback for the U.S. economic recovery intensified fears that a global recession was in the making.

Germany's DAX lost 1.2 percent though France's CAC-40 managed to rise 0.1 percent. Markets in Britain were closed for a public holiday.

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TOKYO _ In Asia, Japan's Nikkei 224 index dropped 1.7 percent, its lowest finish since Nov. 28, 2011.

Hong Kong's Hang Seng tumbled 2 percent. South Korea's Kospi shed 2.8 percent. Benchmarks in Taiwan and Indonesia fell 3 percent and 4.3 percent, respectively.

Mainland Chinese shares also lost ground, with the benchmark Shanghai Composite Index falling 2.7 percent.

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LISBON, Portugal _ Portugal's foreign bailout creditors will provide another batch of the country's (EURO)78 billion ($96 billion) rescue package after concluding the government is abiding by the terms of the loan, the finance minister and international lenders said.

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BERLIN _ Germany's opposition leader says Chancellor Angela Merkel's government must introduce a financial transaction tax to secure his center-left party's support for the European Union's fiscal treaty.

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BERLIN _ France's new foreign minister says he is confident Paris will bridge its differences with Berlin over how to resolve the eurozone debt crisis.

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NICOSIA, Cyprus _ Cyprus looks increasingly likely to have to ask for EU bailout money to help rescue its troubled banking sector, the island's Central Bank governor said.

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DUBAI, United Arab Emirates _ The United Arab Emirates' economic growth is likely to slow to about 3 percent this year as it feels the effects of a sputtering global recovery, the Gulf federation's top economic official said.

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DUBAI, United Arab Emirates _ A Dubai state-run investment company says it has lined up new financing to help it repay in full $1.25 billion in debt due this month.

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