The FTSE has opened 0.8% higher, building on yesterday's 3.2% rise, as markets hope policymakers are moving to combat the eurozone crisis.
Managers have warned investors a further correction in European markets is likely despite shares having already fallen 25% since the start of July.
A strong hint from the European Central Bank it will cut interest rates next month has buoyed markets in early trading, following sharp gains in the US and Asia overnight.
The UK government is to take legal action against the European Central Bank (ECB) over a planned change to European banking rules it warns could harm the City of London.
Jupiter's Guy de Blonay said markets may have to plunge a further 15% before "complacent" policymakers look to more QE.
UK shares were muted at the open, failing to take advantage of yesterday's 3% rise in the S&P 500.
Standard Life Investments' Jonathan Gibbs has closed short positions in Italian and Spanish government debt following intervention from the European authorities.