The FTSE climbed 1.1% this morning to 5,724.37 after rumours of more quantitative easing from the Federal Reserve gained momentum last night.
The release of the minutes of the US Federal Reserve Open Market Committee (FOMC) on 21 September show a widespread support for a round of quantitative easing (QE).
The Monetary Policy Committee (MPC) must inject a further £50bn into Britain's fragile economy to stave off a double-dip recession, the British Chamber of Commerce warns.
Chancellor George Osborne is set to give the Bank of England the green light for more monetary stimulus to prevent the economy slipping back into recession.
The Bank of England has resisted growing calls to deliver more stimulus to the economy while maintaining interest rates at the historic low of 0.5%.
Schroders' Keith Wade says the US and UK are increasingly likely to see another round of QE, but he questions whether it will bring any immediate boost to the sluggish economies.
International investors are buying record amounts of gilts on expectations of further Bank of England quantitative easing.
Ignis head of credit portfolio management Chris Bowie explains his defensive positioning on expectations of a further $2trn of US and £400bn of UK quantitative easing.
Investment banking giant JPMorgan says there is a 75% chance the Federal Reserve will begin another round of quantitative easing by end of this year.
Government bonds jumped on Wednesday on rumours the Bank of England could be moving closer to increasing its £200bn "money-printing" programme to buoy the recovery.