European and Asian shares have surged on hopes that new stimulus plans in the US and other countries will revive global economic growth.
In the UK, the benchmark FTSE 100 jumped almost 5%, while the German Dax and France's Cac 40 rose even higher, up almost 7%.
Earlier, Asian stock markets also rallied. Korea's Kospi index rose 7.5% to a near four-week high.
Hong Kong's Hang Seng ended up almost 9%, while Japan's Nikkei added 5.2%.
Stock markets in India and mainland China also rose.
Great expectations
US President-elect Barack Obama said on Saturday his recovery plan would offer the biggest infrastructure investment since the creation of an interstate highway in the 1950s and create at least 2.5 million new jobs.
Hopes that Congress will soon pass legislation that will save the "big three" Detroit car makers from collapse also helped to cheer investors after a dire session on Friday fuelled by grim US unemployment figures.
South Korea and India also unveiled measures to help firms and boost their economies.
"Despite bad US jobs data [announced on Friday], markets are gaining on a sense that they've hit the bottom and expectations for economic stimulus measures being put out by many governments," said Hiroake Osakabe at Chibagin Asset Management.
"There was also talk about further actions by the Chinese government to protect its growth," said Kim Seung-han at HI Investment & Securities.
The UK FTSE rose 197.8 points to 4,247, while Germany's Dax climbed 304.2 points to 4,685 and France's Cac added 192.4 points to 3,180.4.
Mining and construction groups and firms that make machinery were the biggest gainers on hopes that they will benefit from increased investment on infrastructure.
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