A look at economic developments and stock-market activity around the world Tuesday:
LONDON -- The British
economy contracted by 0.6 percent, slightly more than previously thought during the third quarter of 2008, revised official figures showed, stoking market expectations that the Bank of England may cut interest rates to near zero in the new year. Meanwhile, British mortgage approvals fell to their lowest level since at least 1997 in November as buyers were deterred by falling house
prices and fears that the
economic slowdown will hit their budgets, the British Bankers' Association said. The association, which represents Britain's largest lenders, said banks approved just 17,773 loans for new home purchases in November -- 61 percent fewer than the same month last year, and the lowest number the association has ever recorded since it began keeping monthly records in 1997. It is also 14 percent lower than in October. The FTSE-100 share index closed up 6.82 points at 4,255.98, but Germany's DAX was 9.64 points, or 0.2 percent, lower at 4,629.38. The CAC-40 in France fell 22.95 points, or 0.7 percent, at 3,128.41.
BRUSSELS, Belgium -- The European Union approved bank rescue measures for many of the continent's major economic powers, clearing the way for cash injections and loan guarantees expected to help lenders through the
financial crisis. In separate decisions, EU Competition Commissioner Neelie Kroes approved bank rescue measures for Germany, Britain, Spain and Italy, arguing that quick reactions from national governments was key to containing the crisis. The EU also approved a Latvian plan to stabilize the country's banking markets. The plan includes guarantees that will cover most banking debt and allows for the takeover of banks in trouble.
SEOUL, South Korea -- South Korea's Kospi retreated 35.3 points, or 3 percent ,to 1,144.31, Singapore's benchmark lost 1.2 percent and Australia's key index fell 0.7 percent.
MOSCOW -- Russia's Prime Minister Vladimir Putin said that the world financial crisis and rising costs mean the price of natural gas is going to rise. Russia's economy is already suffering as crude oil prices -- the backbone of the country's economy -- have spiraled down in the past months. He spoke at a meeting of a dozen leading natural gas exporters who convened in Moscow to strengthen cooperation amid consuming countries' concerns that they might turn into an
OPEC-style cartel. Members of the loose grouping of about a dozen gas producers from around the world known as the Gas Exporting Countries Forum are planning to sign a joint charter at the meeting.
RIO DE JANEIRO, Brazil -- The benchmark Ibovespa index shed 0.7 percent to 37,357 in midday trading. Brazil, the largest economy in Latin America, lost 40,000 jobs in November. The government still predicts 4 percent growth next year, thought Brazil's Central Bank it could be slighly slower. Brazilian President Luiz Inacio Lula da Silva urged Brazilians to keep economic news in perspective, noting his administration has overseen the creation of 11 million jobs over 6 years. Meanwhile, Argentina's Merval index rose 0.2 percent to 1,047, while Mexico's IPC increased 1.1 percent to 22,296.
BEIJING -- China and the U.S. should combat protectionism as the global economic crisis worsens, Beijing said, in response to a trade case filed to the World Trade Organization by Washington that accuses China of unfairly promoting goods for export. The United States could be cleared to impose economic sanctions against China if negotiations between the two nations fail to resolve the dispute and if a WTO hearing panel rules in favor of the U.S. Hong Kong's Hang Seng Index dropped 2.8 percent to 14,220.79 while Shanghai's main index plummeted 4.6 percent to 1,897.22 as both markets came under pressure after Beijing lowered a key interest rate late Monday.
JAKARTA, Indonesia -- Companies in Indonesia will have shed 40,000 jobs by the end of 2008 as a result of the global financial crisis in the electronics and manufacturing sectors, a government minister said. The worsening economic climate will result in more losses in 2009, he said. The official unemployment rate is around 10 percent. The Indonesian government lowered economic growth forecasts to between 5 percent and 5.5 percent in 2009, down from an earlier projection of 6.5 percent. The World Bank expects a sharper contraction.
WARSAW, Poland -- Poland's central bank slashed its benchmark interest rate by 0.75 percentage points to 5 percent as the economy and the currency weaken under the weight of the global financial crisis. Many economists expected a reduction of no more that half a percentage point. Last month the bank cut the key rate by a quarter point. Meanwhile, government data showed the unemployment rate rose to 9.1 percent in November, up 0.3 percentage points from October, the first rise after five years of steady declines. Poland's jobless rate peaked at 20.7 percent in Feb. 2003. Prime Minister Donald Tusk told a news conference that the rise was due to the slowing of Poland's formerly booming economy amid a global crunch and the return of thousands of emigres who left their homeland seeking work.
WELLINGTON, New Zealand -- New Zealand's recession deepened in the three months through September, with the economy shrinking 0.4 percent in the quarter -- the third consecutive quarter of contraction, a government agency said. A slump in the domestic housing
market, a further slide in household spending and reductions in exports and company investment levels all contributed to the reduction in growth amid the world financial downturn.
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or from one bottom of the wave to the next. A perfect model would feature a uniform distance between high points and between low points. In the currency market, however, it is extremely rare to find such a regular pattern, even though the lengths of cycles are very similar. Hence, we actually use the average distance to determine the length of a market cycle.
