Gold, Stocks Rally Sharply On Central Bank News
30 November 2011, 9:03 a.m. By Kitco News http://www.kitco.com/ (Kitco News) - Financial markets across the board are rallying sharply after the surprise news of a coordinated liquidity move by the world’s central banks. Dow Jones futures are up 282 points at 11,840 and the S&P 500 futures are up 36 points at 1232 in electronic trading ahead of the day session open. Gold is up about $27 at $1741 an ounce, just under the 20-day moving average that comes in around $1,744. “This shows the world’s printing presses are all in coordination,” says Charles Nedoss, senior market strategist at Olympus Futures. In a coordinated move by the U.S. Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan and the Swiss National Bank, the central banks will lower the pricing on existing temporary U.S. dollar liquidity swap arrangements, which will help European banks access dollars. Nedoss said the central bank move also came on the top of a much stronger-than-expected payroll figure from ADP, which came in at 206,000, versus about 130,000 jobs expected to be added. Nedoss called it a “monster” number. With both pieces of news, markets are holding strongly to early gains. By Debbie Carlson of Kitco News; dcarlson@kitco.com