US prepares to outline its rescue plan

Stock markets in Asia surged this morning as global markets staged a historic rally as European governments pledged a total of €1,873bn to shore up the financial sector.

Meanwhile US prepared to unveil its own comprehensive rescue plan of its banks today.

In New York, the S&P 500, which last week fell 18.2 per cent, rose 11.6 per cent.

In Asia, the Nikkei 225 surged more than 14 per cent to close at 9,447.57, finishing with its biggest gains on record.

In Europe the equity markets are expected to open with strong gains. The FTSE 100 is called up 270 points, the CAC 40 is seen 228 points higher and the DAX is expected to surge nearly 300 points at the open of trading.