A look at global economic developments

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

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ATHENS, Greece — Stock markets sank in Greece, Portugal and Spain amid worries over the European Union's debt woes, with Greek customs and tax officials walking off the job in opposition to cutbacks aimed at digging the government out of a budget crisis that has shaken the entire EU.

The 48-hour Greek customs strike is expected to choke imports until next week, with fuel supplies the most likely to suffer. Lines of trucks were already forming at the country's borders, with customs workers allowing through only those carrying perishable goods or pharmaceuticals.

The government of Socialist Prime Minister George Papandreou is under intense pressure from markets and other EU governments to bring its budget deficit down from 12.7 percent of economic output last year to 2 percent in 2013.

A Greek default would be a serious blow to the shared euro currency, but Greece and the EU have insisted that will not happen. Doubts about Greece's finances have also affected market sentiment toward the debt of Portugal and Spain, two other eurozone countries struggling with deficits.

Markets appear worried that political resistance to cutbacks will keep Greece and Portugal from sticking to their plans.

Greece's main composite index was down 3.3 percent, while Spain's IBEX slid 5.9 percent and Portugal's PSI 20 slumped 5 percent.

The euro plunged towards $1.37, hitting its lowest since May.

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FRANKFURT — The European Central Bank kept its main interest rate unchanged at the record low of 1 percent for the ninth month running and gave its cautious backing to the Greek government's attempt to get a grip on its borrowing.

Bank President Jean-Claude Trichet said it was "absolutely crucial" that the Greek government stick to its plan to get the budget deficit down from a staggering 12.7 percent of the country's gross domestic product in 2009 to below 3 percent in 2012.

Stock markets sank in Europe. The FTSE 100 index of leading British shares closed down 2.2 percent, Germany's DAX slid 2.5 percent and the CAC-40 in France ended 2.8 percent lower.

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HONG KONG — Asian stocks mostly retreated. Japan's Nikkei 225 stock average fell 0.5 percent with Toyota continuing to drag on the market as the world's largest automaker grappled with a global recall. Hong Kong's Hang Seng tumbled 1.8 percent, Shanghai's main index fell 0.3 percent but South Korea's market added 0.1 percent.

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LONDON — The Bank of England kept its main interest rate unchanged at the record low of 0.5 percent and said it will not be asking the government for the authority to pump more newly created money into the barely recovering British economy.

The rate-setting Monetary Policy Committee (MPC) voted to keep its asset purchase program unchanged at 200 billion pounds ($317 billion) but said it will continue to monitor the scale of the program and could ask the government to make further purchases.

The program boosts the money supply in the economy, thereby lowering interest rates across lending markets.

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PARIS — The International Monetary Fund stands ready to help Greece solve the debt crisis that has alarmed bond markets and rocked the credibility of the European Union's shared currency, the head of the multinational lending agency said.

Dominique Strauss-Kahn said he didn't believe Greece was heading for bankruptcy and expressed confidence that the government of Prime Minister George Papandreou would take the "necessary but extremely difficult" steps to solve the crisis.

"We are there to help," Strauss-Kahn said. "If we're asked to intervene, we will."

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BERLIN — German industrial orders fell 2.3 percent on the month in December amid a broad slip in demand.

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BRUSSELS — European employers called on EU leaders to act now to plug a gap in skilled workers by increasing training programs and doing more to attract well-educated migrants.

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North Korean officials reopened hundreds of markets two months after a major economic upheaval sparked riots and left scores starving in the impoverished communist nation, an activist said .