A look at economic developments around the globe (AP)

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

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LONDON ? Global stocks took another pounding as worries over S&P's downgrade of U.S. debt outweighed relief at the European Central Bank's purchase of Italian and Spanish bonds to help the two countries avoid devastating defaults.

The world's leading financial policymakers said they were ready to act to contain the uncertainties in the markets, but they were unable to ease the concerns of stock market investors.

Britain's FTSE 100 index of leading British shares closed down 3.4 percent, France's CAC-40 slid 4.7 percent and Germany's DAX tumbled 5 percent.

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TOKYO ? Earlier in Asia, the repercussions of S&P's downgrade also weighed on stock markets. Japan's Nikkei 225 stock average and Hong Kong's Hang Seng both closed down 2.2 percent. South Korea's Kospi ended 3.8 percent lower, and China's main exchange in Shanghai also fell 3.8 percent.

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FRANKFURT, Germany ? A risky European Central Bank decision to fight the Continent's debt crisis by buying Spanish and Italian bonds started pushing down the soaring interest rates threatening those countries with financial disaster. But some analysts cautioned that buying up the bonds of deeply indebted governments transfers significant risk to the balance sheet of an institution long reluctant to move beyond its traditional role of controlling inflation. Others warned that ECB reluctance to engage in the program risked a halfway effort that would let rates rise again.

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ATHENS, Greece ? Greece banned short selling on the stock market for two months, starting on Tuesday, after shares on the Athens Stock Exchange plunged to their lowest level in more than 14 years.

The Greek index dropped 6 percent to 998.24 points, the lowest level since January 1997.

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BEIJING ? The official newspaper of China's ruling Communist Party lambasted the U.S. for its credit rating downgrade and called for better coordination between the West and developing nations on economic policy.

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PARIS ? France's finance minister says the French Parliament can't approve an expanded European bailout fund before September.

French legislators are scheduled to hold a special session Sept. 6 to vote on a budget amendment allowing funding for a new aid plan approved by EU leaders July 21. The plan is aimed at helping debt-laden eurozone nations and calming markets.

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MADRID ? A Spanish Finance Ministry official says the country's Parliament won't be voting on key changes to the EU bailout fund until September.

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NEW DELHI ? India's finance minister said the country's economic fundamentals were strong and could handle any uncertainties arising from the first-ever downgrade of the U.S. government's credit rating.

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TAIPEI, Taiwan ? Taiwan's exports surged 17 percent in July to a record monthly high of $28 billion amid strong demand for the island's high-tech goods.

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DUBAI, United Arab Emirates ? A Dubai government conglomerate that controls some of the emirate's industrial powerhouses will repay in full $4 billion worth of debt coming due this month, the city-state said.

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Source: http://us.rd.yahoo.com/dailynews/rss/economy/*http%3A//news.yahoo.com/s/ap/20110808/ap_on_bi_ge/economy_countries_glance

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