1st December 2011
These were The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank. Equity markets surged on the back of the news with the UK FTSE 100 index rising by 3% and the US Dow Jones Industrial Average rising by some 468 points or 4.2% and the German Dax index rising by 5%. They translated what was a rather technical move into hopes for more central bank liquidity and surged. Perhaps they were listening to many news outlets who talked of action now when in fact the announcement was for future action as it starts on December 5th and continues until 1st of February 2013.
What is the underlying cause of this move?