Global markets from New York to Hong Kong soared on yesterday’s co-ordinated decision by major central banks (the American FED, Eurozone ECB, Japan, Canada) to cut the interest rate on dollar-swaps with 50 basis points. The central banks initiative don’t represent any cure to basic problems in global economy, but is seen as a positive measure to avoid further contagion of the European sovereign debt crisis.

US stock indexes jumped more than 4 % (Dow 4,24 %) after a strong rally in Europe. The exchanges in Asia saw heavy gains. Heng Seng jumped 6 %, and the joint MSCI Asia Pacific Index has climbed 4,3 % during the week, its biggest gains since end of September. Even negative numbers on the Chines manufacturing index did not spoil the party, underlying a better market sentiment. This in spite of the future of the Euro remains open. France is pushing for stronger financial co-ordination and more power to Brussels and the EU-Commission. This implies member states have to give up on national sovereignty leaving economy and finances to Brussels. This has never been an easy sell to member countries.

Gold and old prices soared on the Central Banks news. NYMEX is trading above the critical 100 USD barrel level and Gold reached 1750 indicating that a new test on the all time high 1918 is in the store. Euro and Yen are strengthened towards the dollar, and investors appetite for smaller currencies seems toe back.