1 December 2011 Last updated at 16:51 GMT

Stock markets falter after central bank stimulus plan

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Global stock markets have dipped after strong gains on Wednesday sparked by central banks' plans to boost lending.

The FTSE-100 ended down 0.29%, the CAC-40 in France down 0.78% and the German Dax index fell 0.87% by the close.

It follows downbeat comments from the new head of the European Central Bank (ECB) and higher yields on Spanish bonds.

Mario Draghi said the eurozone economic outlook faced heightened risks.

In its latest bond auction, Spain raised its target of 3.75bn euros ($5.1bn; £3.2bn), but was forced to pay higher interest rates to borrowers than in previous sales.

However, the rates of between 5.19% and 5.54% on three, four and five-year bonds were well below the 7% level that is widely seen as unsustainable.

A similar bond auction in France raised almost 4.5bn euros. Here, however, interest rates fell from a previous auction to 3.18% on 10-year bonds and 3.65% on 15-year bonds.

Earlier, Mario Draghi, president of the ECB, told the European Parliament that "downside risks" to the eurozone economic outlook had increased.

He also said temporary measures by the bank, such as buying up government debt, would be limited.

The bank has been buying up debt from some eurozone members to try and boost market confidence.

Cutting costs

On Wednesday, the US Federal Reserve, the European Central Bank, and the central banks of the UK, Canada, Japan and Switzerland said they would take joint action to ease tensions in the global financial system from 5 December.

Based around a transaction called dollar swaps, the plan cuts the cost of borrowing the US currency by half a percentage point.

As well as cheaper US dollars, the central banks will also provide easier access for lenders to other major currencies as and when they need it.

These measures should, according to policymakers, trickle down and make it easier for businesses and households to get access to finance.

Analysts said sentiment was lifted by the hope that the plan may limit market volatility and go some way in helping to find a solution to the ongoing debt and economic problems in the eurozone.

Also on Wednesday, China said it would free up money for its banks to lend, which was also welcomed by investors.

Wall Street's Dow Jones index saw its biggest gain since March 2009, rising 4.2%.