LONDON (MNI) - Spreads are irrelevant in the current situation where a large body of traditional investors in Greek government bonds have withdrawn from the market, Petros Christodoulou, head of the Greek Public Debt Management Agency, said Thursday.

Christodoulou said that the downgrade of Greece's sovereign ratings by ratings agencies had led to a "loose, passive supply" of GGBs worth between "30, 40 ... up to 50bn" euro, he said.

WASHINGTON (MNI) - The following are top events and news reported Thursday ET in the global financial system by Market News International:

LONDON (MNI) - Petrol prices edged higher in August but base effects entail they will have a small negative impact on the change in the annual rate of CPI.

The MNI Index shows petrol prices rose just 0.1% on the month in August, having risen by 1.0% last August. That base effect entails petrol prices will take 0.04 percentage point off the change to the CPI 12-month rate.

BERLIN (MNI) - Germany's economic upswing is still "very fragile," Chancellor Angel Merkel said Thursday at a joint press conference here with the head of the German Federation of Trade Unions (DGB), Michael Sommer.

"We are jointly of the opinion that there exists a certain economic recovery but that this upswing is still very fragile, and everything has to be done to secure jobs and, wherever possible, create new ones," Merkel explained.

By Joseph Plocek

WASHINGTON (MNI) - The U.S. July trade balance improved to -$42.8 billion, a number that is more in line with recent trends, suggesting a limited impact on U.S. real growth. Imports fell after surging the prior period.

By Brai Odion-Esene and Ian McKendry

WASHINGTON (MNI) - Initial claims for U.S. state unemployment benefits fell by a massive 27,000 to 451,000 in the September 4 week after seasonal adjustment, according to data released by the U.S. Labor Department Thursday.

The Labor Department analyst said with Monday being a federal holiday, all state offices were closed and as a result, "there were a number of states that were not able to report data to us this week."

By Daniel Horch

SAO PAULO (MNI) - Brazil's Central Bank Monetary Policy Committee (Copom) cut inflation forecasts for 2010 and 2011, and though the 2010 number remains above the target, Copom models now show 2011 inflation "near" 4.5%, according to the minute's of last week's policy meeting released Thursday.

By Courtney Tower

OTTAWA (MNI) - Canada's trade surplus with the United States was cut in half in July as exports declined and imports rose with its huge trading partner, sending Canada's trade deficit with the world to $2.7 billion from $1.8 billion in July.

The July trade deficit rose from a sharply revised deficit in June, to $1.8 billion from the $1.1 billion earlier reported.