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

FRANKFURT — With Greece overdrawn and no one eager to foot the bill, Europe’s messy debt crisis has exposed a fundamental weakness among the 16 countries that share the euro: different and often diametrically opposed approaches to spending don’t make for a happy union.

By telling Greece they stand shoulder-to-shoulder as it struggles to rein in a runaway deficit and impose severe austerity measures, but offering little more than moral support, the European Union’s biggest hitters — Germany and France — only slowed the market contagion afflicting Greece, and did not cure it.

That may brake momentum for countries like Latvia adopting the beleaguered euro. More broadly, it could force Europe, already in a winter of growing discontent, to reconsider how much of a union it really wishes to be.

European shares ended lower. Britain’s FTSE 100 benchmark index fell 0.4 percent, Germany’s DAX fell 0.1 percent, France’s CAC-40 slid 0.5 percent and Greek and Portuguese stocks also fell.

BEIJING — China moved to curtail bank lending Friday for the second time in a month in the latest effort to cool down its supercharged economy.

Chinese leaders worry that a stimulus-driven torrent of lending is fueling a dangerous bubble in stock and real estate prices. They also are concerned that the flood of money surging through the economy is adding to inflation.

Banks were ordered Friday to increase reserves by half a percentage point — to 16.5 percent for large lenders and to 14.5 percent for smaller institutions.

The announcement came after most Asian markets closed. Japan’s Nikkei 225 advanced 1.3 percent, the Shanghai Composite index jumped 1.1 percent and Australia’s benchmark added 0.2 percent. Markets in Singapore, Thailand, Malaysia and Indonesia also rose. Hong Kong’s Hang Seng reversed early gains to close down 0.1 percent, while South Korea’s Kospi dropped 0.3 percent.

BRUSSELS — The 16 countries that use the euro barely grew in the fourth quarter, as a modest recovery stalled amid turmoil in financially troubled members such as Greece and a disappointingly flat performance from Germany, the biggest economy in the eurozone.

The figures lagged well behind fourth-quarter growth in the United States and raised concerns that Europe could slip back into recession as government stimulus efforts expire and the continent struggles with a government debt crisis in some countries.

Eurozone gross domestic product grew by only 0.1 percent in the last three months of 2009 from the previous three-month period, EU statistics agency Eurostat said.

Export powerhouse Germany turned in zero growth as consumption levels remained weak.

The eurozone growth figure fell short of expectations for a 0.4 percent increase and stoked worries the eurozone may dip back into recession.

ATHENS, Greece — Greek Prime Minister George Papandreou criticized the European Union as “timid” and too slow to express unified support for his country during its financial crisis, a day after Greece won backing — but no detailed bailout plan — at an EU summit.

Papandreou said that while the country had received a statement of support, delays and conflicting statements over the past few months had made things worse.

Greece’s debt crisis has plunged the euro, the currency used by 16 EU nations, into the worst turmoil it has seen since it was launched 11 years ago.

MADRID — Spanish unions called for demonstrations against a plan to raise the retirement age, the first hint of labor unrest since the government unveiled austerity measures to trim a ballooning deficit and restore credibility on markets rattled by the Greek debt crisis.

Nationwide rallies have been convened over a two-week period, starting February 23 in about 10 cities.

Late last month the government said it would cut spending by nearly $50 billion ($70 billion) over four years to rein in a swelling deficit. The government’s goal is to trim the deficit to the EU limit of 3 percent of GDP in 2013.

BERLIN — Germany’s economic recovery unexpectedly lost momentum in the fourth quarter as output failed to grow from the previous three months

PARIS — France’s gross domestic product grew 0.6 percent in the October through December period. The eurozone grew just 0.1 percent.

A government plan to encourage drivers to trade in their old cars for new ones helped boost the country’s economy, the finance minister said.

MUMBAI — India’s factory output surged 16.8 percent in December, beating expectations, as stimulus measures and rising demand ensured a 12th straight month of industrial expansion.

RIGA, Latvia — Credit ratings agency Standard & Poor’s raised its outlook for Latvia from negative to stable, saying the prospects for recovery were improving in the European Union’s weakest economy. Hard money training.

Tags: economic developments, major stock, money surging, real estate prices, stocks

This entry was posted on Friday, February 12th, 2010 at 8:15 pm and is filed under Asian Finance, Canada Finance, Chinese Finance, Debt, Economic Turmoil, Global Economy, Global Financial, Global Recession, India Finance, Market Finance, US Deficit, US Finance, US Inflation, World Financial, european economy. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.