A look at economic developments and activity in major stock markets around the world Friday:
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FRANKFURT, Germany — Top European Central Bank official Juergen Stark is resigning well before the end of his term, removing a key voice for higher interest rates and raising questions about the bank's course during Europe's debt crisis.
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LONDON — Europe's handling of its debt crisis returned to haunt markets, with stocks down sharply and the euro sinking to its lowest level against the dollar in over six months after a top European Central Bank official unexpectedly resigned.
In Europe, the FTSE 100 index of leading British shares was down 2.1 percent while Germany's DAX fell 3.5 percent. The CAC–40 in France was 3.2 percent lower.
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BEIJING — In Asia, Japan's Nikkei 225 index swung between gains and losses before closing down 0.6 percent. Hong Kong's Hang Seng was 0.2 percent lower.
The benchmark Shanghai Composite Index edged down less than 0.1 percent while the Shenzhen Composite Index lost 0.6 percent.
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SHANGHAI — China's inflation rate retreated from a three–year high in August as food price increases moderated, suggesting Beijing may be able to hold off on further monetary tightening as it copes with a slowing global economy.
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TOKYO — Japan's economy contracted in the April–June quarter at an annual rate of 2.1 percent, worse than the initial estimate, the government said, underlining the damage from the March earthquake and tsunami.
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BRUSSELS — The European Commission says Ireland is well on track to reforming its economy and returning to growth and will receive its third bailout installment of $7.7 billion in September and October.
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MARSEILLE, France — The financial leaders of the world's most developed economies wrangled over how to revive a faltering recovery at a time when interest rates are already low and government debt is high.
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SHANGHAI — China's auto sales rose 4 percent in August as growth in the world's biggest vehicle market cooled further, an industry group reported.
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