NEW YORK (Reuters) – Stocks rose 3 percent on Wednesday as major central banks jointly added liquidity to the world’s financial system, easing worries about a global downturn.
The U.S. Federal Reserve and the European Central Bank as well as the central banks of Canada, Britain, Japan and Switzerland agreed to lower the cost of existing dollar swap lines — reducing the cost of temporary dollar loans to banks — by half a percentage point.
Financial, energy, materials and industrial stocks, among those seen most economically sensitive, led gains, though all SP 500 sectors rose. Bank of America Corp (BAC.N) rose 3 percent to $5.22 after hitting a near 3-year low, while JPMorgan Chase Co (JPM.N) added 6.3 percent to $30.36.
“I don’t see the global economy going into recession. In fact, today’s movement by the central banks to inject massive liquidity I think cushions the global economy,” said Peter Cardillo, chief
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