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A Look At Economic Developments Around The Globe

The Associated Press

A look at economic developments and stock market activity around the world Wednesday:

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LONDON — European stock markets trimmed earlier gains and Wall Street slipped after U.S. government data showed the country's exports fell to a near three-year low in April. The FTSE 100 index of leading British shares closed up 0.7 percent at 4,436.75 with heavyweight mining and oil companies leading the march higher amid higher commodity prices. Germany's DAX rose 1.1 percent to 5,051.18 with sportswear group Adidas AG up over 7 percent following a recommendation upgrade from analysts at HSBC. France's CAC-40 was up 0.6 percent at 3,315.27. Europe's main markets had been up around 2 percent earlier in the day but a subdued opening on Wall Street prompted some investors to book profits.

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MILAN — With markets up but still hesitant, finance officials from the Group of Eight countries will try to encourage nascent confidence at their summit in southern Italy as they take stock of measures taken so far to counter the world economic crisis. There is more reason for optimism than when they last met in Rome in February. Among the signs that conditions are improving is the ruling that 10 of the largest U.S. banks are strong enough to repay $68 billion in government bailout money. The meeting of G-8 finance ministers Friday and Saturday in the southern Italian city of Lecce will include officials from the U.S., Japan, Germany, France, Britain, Italy, Canada and Russia, and will set the agenda for a meeting of G-8 national leaders in July in L'Aquila outside Rome.

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SANTIAGO, Chile — Latin America's economy will shrink by 1.7 percent in 2009 due to falling domestic demand, exports and remittances, even if growth rebounds as expected in the second half of the year, a U.N. body said. The region was relatively well-prepared for the current crisis, with many countries holding less debt and more currency reserves than they had in the past, said the U.N. Economic Commission for Latin America and the Caribbean. But many were still vulnerable to steep declines in trade and money sent home by migrants, which had helped drive growth in recent years, according to a statement from the group, which is known as ECLAC.

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FRANKFURT — Inflation in Germany, Europe's biggest economy, fell to its lowest in 22 years in May as manufacturers' revenues dropped and business failures increased, the Federal Statistical Office said. The Wiesbaden-based office said the consumer price inflation rate fell to zero in May on an annual basis, down from 0.7 percent in April. That was mainly due to higher energy and food prices a year earlier, but also suggests consumers are buying less, causing retailers to slash prices. Energy prices fell about 8 percent, while food prices slid 1.2 percent compared to year-ago levels.

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SAO PAULO — Brazil's annual inflation rate slowed to 5.2 percent in May as a recession slashed domestic demand, but not likely enough to deter the country's fourth interest rate cut this year late on. Consumer prices rose 0.47 percent from the previous month, faster than expected but slightly less than the 0.48 percent gains seen in April, the national statistics agency said. Gains in food prices quickened to 0.44 percent for the month, while increases in personal and health care costs slowed and transport costs fell. Annual inflation was 5.53 percent in April and about 5.9 percent at the end of last year.

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SINGAPORE — Singapore analysts cut forecasts for 2009 economic growth — and now expect a deeper recession — as the global slowdown hurts demand for the city-state's exports. The country's gross domestic product will likely shrink 6.5 percent this year, according to the median forecast of 19 economists in a quarterly survey that the central bank released. In the previous survey in March, analysts had expected the economy to contract 4.9 percent this year. But they boosted their forecast for 2010 growth to a 4.2 percent expansion from 3.3 percent.

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WARSAW, Poland — Poland's economy minister said he wants to increase trade with the country's eastern neighbors, including Russia and Belarus — two countries with whom political ties have sometimes been tense. Waldemar Pawlak's comments come as Poland's major trading partners within the European Union, most notably Germany, are suffering a recession and have cut their demand for Polish products.

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SHANGHAI — Chinese shares rose as inflation data spurred investor hopes the government might unveil plans for more stimulus spending. The benchmark Shanghai Composite Index added 28.36 points, or 1 percent, to close at 2,816.25, its highest level since July 31. The Shenzhen Composite Index for China's smaller second exchange rose 1.2 percent to 932.13. Investors were encouraged by consumer prices falling a less-than-expected 1.4 percent in May from a year earlier, analysts said. A prolonged fall in prices can be economically damaging.

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TOKYO — Japan's benchmark index jumped to a fresh eight-month high, powered by climbing commodity prices and optimism that a global economic recovery is more than just speculation. The Nikkei 225 stock average gained 204.67 points, or 2.1 percent, to 9,991.49 — edging toward the key 10,000 level and its highest close since Oct. 7 when it stood at 10,155.90. The broader Topix index rose 2 percent to 937.01. Oil prices zoomed above $71 a barrel in Asia to reach a 2009 high. Prices have jumped more than 100 percent in three months as traders have cheered news showing the worst of a severe U.S. recession is likely over.