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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (565299)	5/9/2010 11:09:41 PM
From: tejek	Respond to of 1574249

Best news yet.......we rally big time tomorrow. Futures up over 200 pts! ECB will intervene in the bond market. By Nina Koeppen Of DOW JONES NEWSWIRES BASEL, Switzerland (Dow Jones)--The European Central Bank made a stunning U-turn in the early hours Monday, saying it will intervene in the euro zone's public and private debt markets, among other things. The move is aimed to "ensure depth and liquidity in those market segments which are dysfunctional," the ECB said in a snap statement. Financial markets moved higher on the announcement, which came within one hour after euro-zone finance ministers said they created a EUR500 billion support plan for countries facing financial meltdown. The euro rose as high as $1.2948 in Asian trade, compared with $1.2745 earlier. Japan's Nikkei 225 was up 1.3%, while Australia's S&P/ASX 200 was up 1.8%. Dow Jones Industrial Average futures were up 15 points in screen trade. Monday's unprecedented move marks the most radical steps ever taken by the ECB, economists said. It comes only days after ECB President Jean-Claude Trichet said at a press conference Thursday, following the ECB's decision to keep its benchmark rate unchanged, that the Governing Council "did not discuss this option [to purchase sovereign debt]." "The objective of this program is to address the malfunctioning of securities markets and restore an appropriate monetary policy transmission mechanism," the ECB said, insisting the move won't affect its policy stance. "In order to sterilize the impact of the above interventions, specific operations will be conducted to reabsorb the liquidity injected through the Securities Markets Program," the ECB said. In light of tensions in the euro funding markets, the ECB on Monday promised to honor all bids at a fixed rate in the regular three-month money tenders due May 26 and June 30. The ECB said it will also conduct an additional six-month refinancing operation on May 12. It will honor all bids at this tender at a fixed rate that equals the average minimum bid rate of the main refinancing operations over the life of this operation. online.wsj.com