It was a day of rejoice for the share markets, as the London’s leading share index recorded its biggest one-day gain soon after the announcement by the US Treasury Secretary Hank Paulsons that government would spend “hundreds of billions” of dollars to remove illiquid assets which led to global financial crisis.

The tumultuous week for the financial markets ended with FTSE rocketing 431.3 points to 5311.3, recording its biggest rise of 8.8% since establishment in 1984. The rise contributed to addition of £103 billion to Britain’s biggest companies’ value.

The dramatic rise came as a result of a temporary suspension on short-selling of financial shares and the vow by the US government to remove illiquid mortgage-backed assets which crumbled world financial markets.

The decision by the US government could have far reaching effects on the global economy. According to Hank Paulson, the mortgage assets had been clogging up banks’ balance-sheets and blocked vital credit flow. He stated that a programme was essential to remove illiquid assets, which weighed down financial institutions and threatened economy.

Anthony Grech, at IG Index, described 19th September as the most incredible day of an exciting financial week.

CMC markets reported trading of 3.92 billion Footsie company shares compared to 1.3 billion traded last Friday.

The huge rise took FTSE 100 index almost back to beginning of week when it stood at 5416.