A look at economic developments and stock market activity around the world Thursday:

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LUXEMBOURG — The European Central Bank left its benchmark interest rate unchanged at 1 percent, holding steady as it waits to see if a recent massive infusion of credit into the banking system will help loosen up lending to consumers and businesses in the euro zone. Bank President Jean-Claude Trichet said the ECB was pleased by the demand for its record euro442 billion ($623 billion) 12-month loans offered to banks last week, but wouldn't comment about what more it might do.

In stock market trading, the FTSE 100 index of leading British shares fell 106.44 points, or 2.5 percent, to close at 4,234.27 while Germany's DAX dropped 186.95 points, or 3.8 percent, to 4,718.49. The CAC-40 in France lost 100.59 points, or 3.1 percent, to 3,116.41.

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BRUSSELS — Unemployment in the 16 countries that use the euro spiked to a 10-year high in May, with more than 15 million people out of work. The seasonally-adjusted unemployment rate for the euro zone in May rose to 9.5 percent of the work force from 9.3 percent in April. The May figure is the highest since May 1999.

The increase was expected amid decline in the industrial sector across Europe. In the first quarter of 2009, output dropped by 2.5 percent in the euro zone economy.

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LONDON — Crisis-stricken Ireland's debt rating was downgraded by Moody's amid mounting worries about the country's public finances and the cost of the government's bailout of the banking system. The credit ratings agency said it lowered its rating by one notch to AA1 from the top AAA level and warned another downgrade was possible. Moody's was the last of the big three ratings agencies to take the step.

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MUMBAI, India — The Indian government proposed sweeping economic reforms and said growth could revive to as much as 7.5 percent this year if the U.S. economy bottoms out by September and the monsoon rains return to normal. Economic growth for the fiscal year through March slowed to 6.7 percent from an average of 8.8 percent in the previous five years.

The proposed reforms included selling stakes in government-run companies to generate 250 billion rupees ($5.1 billion) a year and eliminating pricey fuel subsidies.

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BEIJING — China's exports fell again in June, but the decline was less severe than in May, deputy commerce minister Chen Jian said. He said he had no detailed data for June, which is scheduled for release next week.

China's exports in May fell by a record 26.4 percent from the same month of 2008, while imports were down 25.2 percent.