Wednesday, November 30, 2011

Global stocks gain on joint central bank move

Global stocks and the euro rallied on Wednesday after the world's leading central banks agreed to cut the cost for European banks to borrow much-needed dollars.

US Stocks rose 3 percent as major central banks jointly added liquidity to the world's financial system, easing worries about a global downturn.

The Dow Jones industrial average was up 408.11 points, or 3.53 percent, at 11,963.64. The Standard & Poor's 500 Index was up 41.92 points, or 3.51 percent, at 1,237.11. The Nasdaq Composite Index was up 83.45 points, or 3.32 percent, at 2,598.96.

European shares rallied in tandem with other risk assets after leading central banks announced joint action to inject liquidity into financial markets strained by the euro zone's debt crisis.

As a result, the FTSEurostocks 300 rose 3.6 percent in its fourth consecutive day of gains, climbing back to levels not seen since mid-November.

Asian stocks also fell sharply overnight, with China's benchmark posting its biggest 1-day fall since August 8 on concerns about growth in the world's second-largest economy.

The Nikkei share average ended lower today, reversing two days of gains on profit-taking as investors remained cautious over new developments in the euro zone debt crisis and looked to data later in the week.

The benchmark Nikkei ended the day down 0.5 percent at 8,434.61, and lost 6.2 percent in November. The broader Topix index shed 0.2 percent on the day to 728.46.