World's central banks act to ease market strains

FRANKFURT, Germany (AP) — Major central banks around the globe took coordinated action Wednesday to ease the strains on the world's financial system, saying they would make it easier for banks to get dollars if they need them. Stock markets and the euro rose sharply on the move.

The U.S. Federal Reserve, European Central Bank, Bank of England and the central banks of Canada, Japan and Switzerland were all taking part.

"The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity," the central banks said in a joint statement.

The announcement came just hours after China reduced bank reserve levels Wednesday to release money for lending and help shore up slowing growth. It was the first easing of Chinese monetary policy in three years - and higher growth in China could be crucial for a suffering global economy.

Stocks surged following the news. The Dow Jones industrial average jumped more than 400 points in early trading and was up 392 an hour after the opening bell. Germany's DAX was trading 4.7 percent higher, France's CAC was up 4.1 percent, the euro rose 1.1 percent to $1.3463 and oil was up $1.45 to $101.25.