Bloomberg reports that stocks surged, extending the biggest three-day rally in global equities since 2009, and the euro strengthened after six central banks acted together to make additional funds available to ease strains from Europe’s debt crisis. Treasuries fell while commodities surged.
The MSCI All-Country World Index climbed 3.1 percent at 10:23 a.m. in New York and is up 7 percent in three sessions. The Standard & Poor’s 500 Index gained 3.2 percent to 1,233.78 as only six stocks retreated. The euro strengthened 1.1 percent to $1.3465. The three-month cross-currency basis swap, the rate banks pay to convert euro payments into dollars, was 133 basis points below the euro interbank offered rate after earlier reaching a three-year high of 163. Oil jumped above $101 a barrel and copper rallied 5.6 percent.
The central banks of the U.S., the euro region, Canada, the U.K., Japan and Switzerland agreed to cut the cost of providing dollar funding via swap arrangements, the Federal Reserve said, and agreed to make other currencies available as needed. China said earlier today it will cut the reserve requirement ratio for banks by 0.5 percentage points from Dec. 5, while data on U.S. business activity and the employment and housing markets topped economists’ estimates….
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