Today is the last day in November 2011, the Dow Jones was up almost 500 points. What caused this Hugh rally in the market today? The Federal Reserve and five other central banks moved to ease the flow of funds to banks hit by Europe’s debt crisis.
The important news is that the central banks are sending a message that they’ve identified the problem and that they are working together, said David Hefty, chief executive officer at Hefty Wealth Partners in Auburn, Ind.
“Up until this point that hasn’t happened,” he said. “The big deal is just saying they are going to be involved. It’s not like they brought out the tank, they brought out the six shooter,” he said.
The Federal Reserve and the centeral banks of the Euro area, Canada, the Uk, Japan and Switzerland agreed to reduce the cost of offering dollar financeng throuh swap arrangements.
What they have agreed to is to lower the cost of temporary dollar loans to banks by 1/2 percentage point.
This move helped to ease investor worries about another financial mess or recession, the the Euro zone debt problems remain unresloved and may continue to plague markets, but for now this has helped.
Further encouraging investors, the latest U.S. data suggested the U.S. economy was moving more solidly toward recovery. The U.S. private sector added the most jobs in nearly a year in November, while business activity in the U.S. Midwest grew faster than expected in Novembe
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December 1, 2011 at 7:01 am (UTC 0)
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