Asian Markets are set for big gains on opening after three substantial economic developments announced in quick succession overnight, including efforts from several central banks to shore up the global financial system, prompted global stock markets to soar and sent the Dow Jones Industrial Average up by more than 400 points.
U.S. stocks rallied, driving the Dow Jones Industrial Average up the most since March 2009, after six central banks took action on Europe's debt crisis by making it cheaper for lenders to borrow in dollars. The S&P 500 advanced 4.3% to 1,246.95 at 4 p.m. New York time and has risen 7.6% in three days. The Dow jumped 490.05 points, or 4.2%, to 12,045.68 today.
The U.S. dollar dropped against the euro and other major currencies Wednesday, although it pared losses as the session wore on, after the world's major central banks moved to cut borrowing costs for banks and strengthen existing swap lines. The euro jumped to $1.3446, after being flat before the central banks' announcement versus $1.3329 in North American trade late Tuesday. It touched $1.3532, its highest level in about two weeks.
WTI Oil rose to a two-week high in New York after the Federal Reserve and five other central banks made additional funds available to ease strains from Europe's debt crisis and as U.S. companies added more workers than projected. Crude oil for January delivery rose 57 cents, or 0.6%, to $100.36 a barrel on the New York Mercantile Exchange. It was the highest settlement since Nov. 16.
Gold futures surged to settle at a three-week high after coordinated action from central banks made additional liquidity available to the global financial system. Gold prices rallied to a high of $1,754.70 on the news, with the February-delivery contract settling at $1,750.30 a troy ounce, its highest level since Nov. 16.
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