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Stocks Rebound On Good News From European Central Bank

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Wall Street rebounded Tuesday from recent losses, pleased about the European Central Bank's issuance of $500 billion in loans to the world's commercial banks.

Investors grew more optimistic that the decision by central banks in the United States, Europe and Britain to lend billions of dollars in multiweek loans will help boost demand in the struggling areas of the credit markets.

After announcing Monday that it would supply euro-zone institutions unlimited two week funds at a fixed rate, the European Central Bank said Tuesday it awarded a higher-than-estimated 348.6 billion euros, or $500 billion, in a 16-day tender. The Bank of England also said it will offer additional reserves to lenders Tuesday, after the U.S. Federal Reserve on Monday conducted a $20 billion auction of 28-day credit.