Stocks leap on central banks' coordinated action

By Daniel Wagner

Associated Press

Published: Wednesday, Nov. 30 2011 7:50 a.m. MST

In this Nov. 28, 2011 photo, specialist Joseph Mastrolia, center, works on the floor of the New York Stock Exchange. Stock markets rebounded Wednesday, Nov. 30, as renewed optimism over the state of the U.S. economy supported sentiment despite the failure of European finance ministers to announce radical new measures to deal with the crippling debt crisis afflicting the 17-nation eurozone.

Richard Drew, Associated Press

Enlarge photo»

Stocks are soaring in early trading after major central banks acted to avert a credit crunch.

The central banks of Europe, the U.S., Britain, Canada, Japan and Switzerland eased banks' access to dollars by reducing their borrowing rates. The move responds to fears that a European country would default, touching off a credit crunch similar to what followed the 2008 collapse of Lehman Brothers.

Banks need dollars to fund their daily operations. Their access dried up as U.S. money market funds reduced their lending to European banks.

The Dow Jones industrial average is up 319, or 2.8 percent, at 11,874 in early trading Wednesday. The S&P 500 is up 32, or 2.7 percent, at 1,227. The Nasdaq is up 70, or 2.8 percent, at 2,586.

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