Stocks Soar on Global Bank Deal

    FRANKFURT AM MAIN, GERMANY - SEPTEMBER 27:  The symbol of the European common currency, the Euro, stands in front of the headquarters of the European Central Bank (ECB) on September 27, 2011 in Frankfurt am Main, Germany. Europe is continuing to wrestle with the ominous prospect of a Greek debt default that many fear could spread panic and push the already fragile economies of Italy, Portugal and Spain into a crisis that would rock the Eurozone and lead to global repercussions. On Thursday the Bundestag, under the urging of German Chancellor Angela Merkel, is expected to pass an increase in funding for the European Financial Stability Facility (EFSF), a measure many see as necessary for financial markets to regain confidence in the European banking system.  (Photo by Ralph Orlowski/Getty Images)

    Ralph Orlowski / Getty Images

    Six major central banks took coordinated action Wednesday to prevent the mushrooming European debt crisis from overtaking the global economy—and the markets love it. In the U.S., the Dow Jones spiked nearly 500 points, climbing back into positive territory for 2011. In the agreement, the U.S. Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank said they would lower the cost of existing U.S. dollar swaps by 50 basis points from Dec. 5 until Feb. 1, which will make it cheaper for banks to get U.S. dollar liquidity when they need it. European stock indexes jumped on the news as well, and the euro rallied against the dollar.

    Read it at The Wall Street Journal