Central banks around the world took joint action Wednesday give banks easier access to dollars, jolting stock markets and easing fears of a global credit crisis. The Dow Jones industrial average soared more than 400 points.
Markets in Europe also surged. Germany’s DAX index jumped 5.4 percent. The euro and commodities prices rose sharply. U.S. Treasury prices fell as demand weakened for ultra-safe assets.
Big U.S. banks were among the top gainers on the stock market. JPMorgan Chase Co. jumped 6.4 percent; Morgan Stanley 7.3 percent, Citigroup Inc. 6.4 percent. Banks hold large amounts of European debt and would have the most to lose in the event of a default by a European country, something investors around the world have been increasingly fearful of.
Wednesday’s coordinated action by the central banks of Europe, the U.S., Britain, Canada, Japan and Switzerland greatly alleviated those worries by cutting short-term borrowing rates to banks, giving
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