$1 trillion rescue package makes stocks surge in Europe

London:  World markets have surged as investors were galvanised back into buying shares by the European Union's surprisingly large $1 trillion plan to defend the embattled 16-country euro currency and prevent a spreading government debt crisis from choking off the global economic recovery.

While stocks bounced back from one of the worst weeks since the height of the financial crisis in the latter part of 2008, the euro also a modest return to favour, spiking up above $1.30 at one stage before settling around the $1.2925 level - last week it had slid to a 14-month low of US$1.2569.

In Britain, investors put aside any concerns regarding the formation of a new government and sent the FTSE 100 index of leading shares up 240.98 points, or 4.7 per cent, higher at 5,364.