central banks

Market indexes gained more than 4 percent and the Dow closed up 490 points after the Federal Reserve and central banks took action on the European debt crisis.

Gainers

• SPDR S&P 500 (NYSE: SPY) up 3.42 percent to $124.15. U.S. markets are moving higher Wednesday on several bits of economic data released today, as well as moves by several central banks to support the global financial system.
  
  Primarily, ADP data showed the addition of 206,000 to payrolls in November, far above the 130,000 expected on the Street.
• iShares FTSE China 25 Index Fund (NYSE: FXI) up 5.48 percent to $36.17.
  
  China stocks are moving on U.S.

The Federal Reserve, the European Central Bank and the central banks of Canada, Britain, Japan and Switzerland said they had agreed to lower the cost of existing dollar swap lines.

The Federal Reserve said Wednesday that it joined some of the world's major central banks in a coordinated action to inject liquidity into the global financial system.

Gainers

• PowerShares DB US Dollar Index Bullish (NYSE: UUP) up 0.46 percent to $21.76. U of Michigan consumer sentiment came in at 57.8, better than the 56.3 expected on the Street.
  
  The number was stronger than 55.7 reported in August. Confidence in the U.S. may lead to a stronger economy as more investments flow in as consumers open up wallets just a little bit more.
  
  Also, the Fed and ECB hashed out a deal with central banks in Japan, England, and Switzerland to support European banks through the end of the year.
• iShares Silver Trust (NYSE: SLV)

Major central banks moved Thursday to remove doubts about the ability of European banks to borrow dollars, opening new lines of credit to institutions for longer periods than before.

Central banks from around the world opened their vaults Thursday to head off another credit crunch like the one that crashed the financial system in 2008 and sent the global economy into a deep recession.

Sept. 9 -- Group of Seven finance chiefs meeting in Marseille, France, agreed that central banks will "provide liquidity to banks as required" to maintain the resilience of the banking system and financial markets.

The delicate task ahead for the Federal Reserve and other central banks is deciding when to start boosting interest rates and reeling in all the stimulus pumped out during the global financial crisis, Fed Chairman Ben Bernanke said Sunday.

The Federal Reserve and other central banks must protect their ability to make key economic decisions free from political interference, Fed Chairman Ben Bernanke said Wednesday.