Share prices are up in London following yesterday's eight percent increase.
The FTSE 100 opened up 1.2 percent this morning as investors reacted to the cut in interest rates in the US. London's leading index maintained its gains through midday, up 1.7 percent on the day at 14:30 GMT.
Yesterday, the FTSE closed up eight percent higher - the third largest gain in the benchmark's history - as investors grew confident in anticipation of monetary policy movements across the Atlantic.
Their optimism was not unfounded, as the US Federal Reserve slashed interest rates to one percent last night in an attempt to kick-start the country's ailing economy. Falling consumer confidence and a sharp decline in retail spending prompted the move.
In the UK, the Bank of England is expected to implement a similar cut, with analysts expecting a further half percentage point reduction, bringing the base rate to four percent.
"Markets have been cheered by hopes of another round of rates cuts from many of the world's central banks, in the latest move at repelling the onset of a prolonged recession," said Anthony Grech, market strategist at IG Index.
The European Central Bank is also predicted to follow the Federal Reserve's lead with a cut in rates in the euro zone next week.
