Europe and its fragile financial system and markets have been dragged back from the edge of the abyss with a little help from their friends.
Major central banks around the world, including the Federal Reserve and European Central Bank, will allow private banks to borrow in U.S. dollars cheaper, with less collateral, and for longer than before. The news sent European and U.S. stocks sharply higher on Wednesday, with the Standard & Poor’s 500-stock index /quotes/zigman/3870025 SPX +0.36% enjoying its best trading day since March 2009.
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