Markets boom stalls after short run

A rally on global markets stalled after euphoria over major central banks’ co-ordinated cut to borrowing costs wore off and investors sought confirmation that European leaders will next week deliver a long-term solution to the debt crisis.

Markets had jumped when the central banks of Europe, the US, Britain, Canada, Japan and Switzerland made it cheaper for banks to borrow dollars, helping them to operate smoothly at a time of tight credit. China’s central bank also acted to release money for lending and shore up growth by lowering bank reserve levels for the first time in three years.