European Markets Rally After Central Banks Promise New Liquidity

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A big announcement by the European Central Bank on renewed dollar liquidity measures sent markets soaring today, and pushed the euro significantly higher against the dollar.

However, markets pared back on gains later, as the measures are by no means a permanent solution to the European debt crisis.

The DAX ended up 2.98%, the CAC up 3.27%, the FTSE MIB up 3.56%, and the IBEX 35 closed up 3.63%.

French banks — whose funding situations have caused trepidation of late — marked a big day. SocGen was up 4.08%, BNP Paribas ended positive 11.73%, and Credit Agricole rose 5.04%.

The biggest black mark on the day came from UBS, which fell 10.38%. But who can be surprised there?

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