E-mail updates
Follow on Twitter
Subscribe to RSSBy msnbc.com news services
Stocks are set to rise sharply at Wednesday’s open after global central banks, including the U.S. Federal Reserve, announced a coordinated effort to provide liquidity to support to the global financial system.
“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” the Fed said in a statement.
European stocks surged on the news, and the Dow Jones industrial average looks set to rally more than 200 points at the start of trading. Earlier, stock prices were already trending higher after China said it was cutting its bank reserve requirement ratio by 50 basis points.
China's central bank cut the reserve requirement ratio for its commercial lenders for the first time in nearly three years to ease credit strains and shore up an economy running at its weakest pace since 2009.
The move comes amid increasing concern among policymakers worldwide that the global economy is on a slippery slope as the euro zone struggles to decisively tackle its two year debt crisis. Global markets recovered early losses on the news.
In other U.S. economic news, a report from payrolls processor ADP showed private employers added 206,000 jobs in November.
Each month, ADP releases a report on whether private employers added any jobs in the prior month. The report is often used as a gauge heading into the government's monthly employment report, which is due out Friday.
The Associated Press and Reuters contributed to this report.
Leave a Comment:
And just how much money will this move cost us ?????
bob
how on earth is it a boom for the stock market that the Federal Reserve banks of the United States are going to print a couple trillion more dollars, this insanity must stop .
Sounds like another bank bailout..Just in time for year end bonuses.
It doesn't make any difference how much this going to cost...just know the 1% in this country won't be paying it...
Just postponing the enviable!
"Inevitable" not "enviable".
We're not suffering because households lack credit. Good grief. We're suffering because we keep pouring taxpayer money into our black hole of a banking system that caused this problem in the first place. Wow... our "mitigation" is actually exacerbating the problem. On the bright side, we'll reach oblivion more quickly and can then rebuild from scratch. We are so screwed....
It is wrong for a private company to have so much control of the U.S. economy and the markets. The Federal Reserve will do anything to protect banking, at the expense of the average U.S. citizen. They continue to devalue the dollar and our purchasing power. They need to get out of the way and let the global economy adjust on its own. Bring on the bankruptcies so we can start over.
Nothing like pouring gasoline on a raging fire started with, well, the same gasoline. Good job of thinking outside of the box to solve this crisis. Throw more money at it - how creative.
Another Wall Street Bailout just in time for Campaign Season. No Surprise there.
I don't see how it helps to grease the track that this train is on. The fleecing of the working people continues. Basically, they are stealing everything from us. Our home values are decimated, retirement funds are still way below what they were in 2008 despite steady contributions. I will never be able to make up the money that was stolen from me by the banks and their fraudulent lending schemes.
The fix is simple. Stop taking everything from the working class and giving it to the CEOs. THE 99% is too big to fail. That's my slogan.