Central Banks’ Coordinated Liquidity Intervention: Cut Rates on Dollar Swap Lines; European Stocks Rally

From Bloomberg:

European stocks rallied for their longest stretch of gains in seven weeks as the Federal Reserve and five other central banks lowered the cost of dollar funding and China cut its reserve ratio for banks.

The Fed, Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank agreed to reduce the interest rate on dollar liquidity swap lines by 50 basis points and extend their authorization through Feb. 1, 2013.

Finance ministers of the 27-nation European Union are meeting in Brussels today to seek agreement on how to temporarily guarantee banks’ bond issuance in order to improve funding conditions for lending. EU leaders agreed last month to provide the guarantees to restore investor confidence in banks.

http://www.bloomberg.com/news/2011-11-30/european-stock-index-futures-decline-on-s-p-downgrades-of-global-banks.html