(30 Nov 2011)
1. Wide of trading floor at Frankfurt stock exchange
2. Mid of chart showing increase in share index
3. Close up of numbers showing increase
4. Various of traders working
5. Tilt up of section of chart showing steep rise in share index
6. SOUNDBITE (German) Robert Halver, Head of Market Research at Baader Bank:
"The Central Banks worldwide did unite and provided banks with liquidity and that is money the European banks currently do not have. This means that the banks are back in business: they can provide loans, they are now liquid again, so they don't have to call in their loans just to get liquidity."
7. Mid of traders
8. SOUNDBITE (German) Robert Halver, Head of Market Research at Baader Bank:
"In the short term the panic is over. But we all know that more steps have to be taken after this important one. The main subject is the sovereign debt crisis and if the ECB deals with that problem by buying bonds a lot will be solved."
9. Traders working, screen showing chart in background
STORYLINE:
Stock markets across the globe soared on Wednesday after major central banks acted together to support the global financial system by cutting short-term borrowing rates.
The central banks of Europe, the US, Britain, Canada, Japan and Switzerland eased banks' access to dollars by reducing their borrowing rates.
They were responding to fears that a European country will default, touching off a credit crunch similar to what followed the 2008 collapse of Lehman Brothers.
Germany's DAX was trading 4.7 percent higher following the announcement.
The Dow Jones industrial average jumped more than 400 points in early trading and was up 392 an hour after the opening bell.
France's CAC was up 4.1 percent, the euro rose 1.1 percent to 1.3463 US dollars and oil was up 1.45 US dollars to 101.25.
Borrowing rates for European nations have skyrocketed on concerns that the European debt crisis has engulfed nations such as Italy which are too big to bail out.
Banks need dollars to fund their daily operations. Their access dried up as US money market funds reduced their lending to European banks.
"This means that the banks are back in business: they can provide loans, they are now liquid again, so they don't have to call in their loans just to get liquidity," said Robert Halver, head of market research at Baader Bank in Frankfurt.
The central banks' action takes some pressure off the financial system, which has signalled in recent days that banks are losing faith in their trading partners.
Banks need to trust each other to maintain healthy flows of credit and keep the system working.
The move by central banks does not address the fundamental problem posed by heavily indebted European nations.
"In the short term the panic is over. But we all know that more steps have to be taken after this important one," said Halver.
He said the European Central Bank could help the situation by buying bonds from struggling European nations such as Italy and Spain.
European finance ministers in Brussels have been meeting since Tuesday but have failed to de liver a clearer sense of how the currency union will proceed.
Investor sentiment was also lifted by China's move to reduce bank reserve levels on Wednesday to release money for lending and help shore up slowing growth.
It was the first easing of Chinese monetary policy in three years, and higher growth in China could be crucial for a suffering global economy.
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