China slashes rates as EU plots stimulus

China slashed interest rates by the biggest margin in 11 years on Wednesday and the European Union plotted a 200 billion euro stimulus plan as central banks and governments acted to jolt the world out of its deepening slowdown.

New U.S. government data underscored the severity of the downturn. U.S. consumer spending plunged at the steepest rate in more than seven years in October and U.S. durable goods orders tumbled at twice the rate economists expected.

President-elect Barack Obama, naming former Fed chairman Paul Volcker to head a special advisory panel on the financial crisis, promised new approaches to deal with the economic maelstrom.

"It has become increasingly clear in recent months that we are facing an economic crisis of historic proportions," Obama told reporters. "We are called to seek fresh thinking and bold new ideas from the leading minds across America."

Stocks moved higher. The Dow Jones industrials were up following their first three-day gain since August. European stocks ended slightly higher after trading choppily much of the day. Japan's Nikkei average shed 1.3 percent.

The dollar rose versus the euro.

Oil rose above $53.