The FTSE 100 has moved 3% higher after the world's major central banks announced a move to boost liquidity within the financial system.
The Federal Reserve gave out $1.2trn in loans to US banks secretly in 2008, Federal documents have revealed.
The US supercommittee's failure to agree a debt reduction plan means the country faces a second rating downgrade by the year end, an economist has warned.
The US Federal Open Market Committee(FOMC) is remaining cautious over the country's economic outlook, despite recent positive data buoying investor sentiment.
The Federal Reserve plans to stress test six major US banks against market shocks, as part of an annual review of bank health.
A Federal Reserve official has called for more "monetary accommodation" to tackle surging unemployment and the country's under pressure mortgage market.
Minutes of last month's meeting of the Federal Reserve's open market committee have raised the prospect of a third round of quantitative easing to boost the US's sluggish recovery.
US Federal Reserve chairman Ben Bernanke has told Congress the US economy is "close to faltering" and more action may be needed.
The Federal Reserve's latest cunning plan seems to have been misinterpreted by many, but not by Mr Market. This is less of a money-printing exercise, á la QE1 and QE2, than an attempt to flatten the yield curve.