Fireworks London

Photo: AP

Markets across the world staged a major rally today, and central banks are at the centre of the chatter.But first, your scoreboard:

Dow: 12,415; +287 pts; +2.37%
S&P 500: 1,315; +30 pts; +2.30%
NASDAQ: 2,845; +67 pts; +2.40%

Now for the day’s top stories:

  • Markets began rallying in the pre-market after WSJ’s star Federal Reserve reporter John Hilsenrath wrote last night that euro woes, disappointing economic data, and strains in financial markets “have prompted a shift at the Federal Reserve, putting back on the table the possibility of action to spur the recovery.” The Buzz Is Growing That World Leaders Will Fire Off A Globally Coordinated Bazooka >
  • The ECB decided to hold rates steady at 1.00 per cent in its June monetary policy decision. Draghi emphasised that EU leaders need to take more drastic measures, saying “Some of these problems in the eurozone have nothing to do with monetary policy and I don’t think it would be right for monetary policy to fill these other policies’ lack of action.”
  • A Norwegian technology site Dagen IT reported that 6.5 million LinkedIn passwords had been leaked and the data posted on a Russian hacker website. LinkedIn later confirmed that the passwords had been stolen. Here’s How To Change Your LinkedIn Password After Today’s Security Breach >
  • Reuters reported that German and EU leaders are involved in “intensive contingency planning” to prepare a rescue plan for Spain, even though Madrid has not formally asked for such aid. EU aid would save the country from the embarrassment and restrictions that come with an IMF package. Here Are 14 Reasons Spain Is Turning Into A Disaster >
  • European shares zoomed higher despite lack of action from the ECB. The Italian FTSE MIB rallied a full 3.5 per cent, and even the Dax—which has recently been under fire—rallied 2 per cent. This Is A Fantastic Presentation On Why ‘Germany Is Riskier Than You Think’ >
  • NASDAQ said it will set aside $40 million to repay investors who lost money due to trading issues during the Facebook IPO. CHART OF THE DAY: Facebook’s Horrible IPO In Context >
  • The Federal Reserve’s Beige Book said that “overall economic activity expanded at a moderate pace” over the last two months, with only one Fed district reporting a slowdown in economic activity. 
  • BONUS: The Ultimate Guide To Kicking arse On Wall Street >

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