Global shares have risen on optimism that a revised version of the $700bn (Ј380bn) US banking rescue package will be approved by US politicians.
With the US Senate due to vote on the new plan later on Wednesday, hopes are growing that enough changes have been made to get the bill passed.
The UK's FTSE 100 share index was up 1% in early trading.
UK stocks were also lifted by news the Bank of England is to pump Seven killed in India explosion ...
Nigeria 'must ban' ex-minister ... a further $30bn (Ј17bn) into the money markets.
The FTSE's rise was echoed in France, where the Cac 40 index was up 0.7% in initial exchanges.
Only Germany's Dax was lower, losing 0.3%, after it was dragged down by carmaker Daimler, whose shares were 4.5% lower on speculation it will soon issue a profits warning.
Earlier on Wednesday, Japan's Nikkei index had ended up 1% while Australia's main index closed up 4%.
On Tuesday, the Dow Jones index of top US shares closed up 4.7%.
Political momentum
The new US package is broadly similar to the first, but includes new measures to help gain Congress's backing.
One of the new clauses will raise the government's guarantee on savings from $100,000 (Ј56,000) to $250,000.
To get through the Senate, the bill will require the backing by 60 of the 100 senators.
However, it will then have to return to the House of Representatives on Thursday, which rejected the first version of the $700bn rescue plan on Monday.
The BBC's Jonathan Beale, in Washington, says a positive vote in the Senate is likely to give the bill momentum when it goes back to the House.
'Responsible bill'
Presidential candidates John McCain and Barack Obama, who both support Mr Bush's efforts to bail out the economy, say they will return from campaigning to vote in the Senate.
And senior Democrats have pledged to find a bipartisan solution.
"Working together, we are confident we will pass a responsible bill in the very near future," Senator Harry Reid and House of Representatives Speaker Nancy Pelosi wrote to President George W Bush.
However, some members of Congress continue to press for more fundamental changes, such as insurance for bad loans, rather than the removal of the loans from the books of financial companies, says the BBC's Americas editor Justin Webb.
Earlier President Bush had warned of "painful and lasting" consequences for the US should Congress fail to agree a rescue plan.
Analysts say the Senate is more likely to pass the bill because senators are not facing the same pressure from voters - who are generally opposed to the bailout - as members of the House.
All representatives face re-election in November compared with only one-third of senators.
(BBC)
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