Switzerland (GenevaLunch) - The Swiss SMI stock market index has rebounded with the largest single-day gain in its 20-year history Monday, in line with strong surges in markets throughout the world. Credit Suisse rose 28%, one of the stars of the day and both it and UBS rose strongly Tuesday. Gains continued worldwide Tuesday, but more moderately, with markets given a strong boost by news that key central banks will flood the market with US dollars, easing the credit crunch for banks and thus helping to revive confidence and reduce money-market rates.

What many in the Swiss media were asking Tuesday morning was: with Switzerland the rare country that is not bailing out its banks, will the bill come later? Voices urging caution were raised, pointing to the lack of a visible plan in place should Swiss banks need the kind of bailout experienced elsewhere. The government and the SNB insist their capital is adequate.

Bloomberg reported Tuesday afternoon that The US Federal Reserve Tuesday said it will do unlimited dollar swaps with three other central banks, removing its previous cap of S380 billion. The Swiss National Bank had already announced Monday what the Fed confirmed Tuesday: that the European Central Bank, the Bank of England and the Swiss National Bank will offer European banks unlimited dollar funds with maturities of seven, 28 and 84 days at fixed interest rates against “appropriate collateral.

Swissinfo analyzes the Swiss media response and cites Le Temps saying “a bill will arrive on the table in Bern sooner or later, in one form or another.” TSR notes that the euphoria may be shortlived, with negative economic indicators expected from several countries in coming days.

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