Global stock markets fell Thursday amid speculation that China, Asia's economic engine, may announce that its gross domestic product slowed in the second quarter, according to AP. In early trading in Europe, Britain's FTSE 100 was down 0.8 percent at 5,617.25. France's CAC-40 shed 0.7 percent to 3,135.99, while Germany's DAX fell 1.2 percent to 6,375.41. Europe's debt crisis and signs of weak growth in the United States are undermining demand for Chinese exports and have investors concerned that a slowdown in the world's second-largest economy could be worsening. China is scheduled to announce GDP results for the April to June period on Friday, and growth likely slowed to 7.9 percent, the worst reading in the aftermath of the 2008 global financial crisis, Singapore's DBS Bank said. China's economy grew 8.1 percent in the first quarter. "Growth momentum in China has been clearly decelerating in the second quarter," DBS said in a report. "Lingering woes in Europe and downward revisions in U.S. growth projections of late point to more challenges ahead for exports." Japan's Nikkei 225 index fell 1.5 percent to 8,720.01, while Hong Kong's Hang Seng plunged 2 percent to 19,027.38. South Korea's Kospi slipped 2.2 percent to 1,785.39. Australia's S&P/ASX 200 dropped 0.7 percent to 4,068.0, and China's Shanghai Composite gained 0.5 percent to 2,185.49. Equity markets in Europe and Asia also fell because the U.S. central bank gave no indication it plans to soon implement another round of Treasury bond purchases known as quantitative easing. The Federal Reserve released the minutes from its last meeting Wednesday, and investors were looking for signs that the Fed will take action to boost flagging economic growth. "Our base-case scenario for the majority of Asia-Pacific economies is slower growth in 2012," credit rating agency Standard & Poor's said in a report. The Bank of Japan left its benchmark lending rates unchanged after a two-day policy meeting on Thursday, while South Korea's central bank surprised analysts by cutting rates by 0.25 percentage point. On Wednesday in New York, the Dow Jones industrial average closed down 0.4 percent at 12,604.53. The Standard & Poor's 500 held steady at 1,341.45, while the Nasdaq composite slipped 0.5 percent to 2,887.98. Benchmark oil for August delivery was down 54 cents at $85.27 a barrel in electronic trading on the New York Mercantile Exchange. Crude rose $1.90 to settle at $85.81 on Wednesday in New York. In currencies, the euro fell to $1.2218 from $1.2228 late Wednesday in New York. The dollar dropped to 79.29 yen from 79.67 yen.
