US markets rose strongly, cutting Monday's losses in half as investors went all optimistic and bet the $US700 billion bailout package would be approved.
US politicians bailed out of helping correct the mess they and their financial groups created on Monday, sending the world economy into waters not visited since the Great Depression.
Australian financial stocks took heart from the move by US investment legend, Warren Buffet to $US5 billion ($A6 billion) in newly created commercial bank, Goldman Sachs Group and to take options to put in a further $US5 billion over the next year.
World markets steadied overnight after major central banks revealed huge large-scale emergency $US180 billion injections of dollar liquidity in an attempt to halt the global financial market crisis.
American markets fell by up to 4.7% on the S&P 500, London was down, cash dried up around the world, Australian market could be down sharply at the open and Russia froze.
The Lehman Brothers collapse saw shares in America and Europe plunge after a smaller than expected fall in Asia-Pacific shares yesterday was tempered by Japan, China and South Korea being closed for a holiday.
