But despite investors appearing confident the worst of the recent credit market shake-out is over, Citigroup has warned that its third-quarter profit will drop by 60 per cent.
However, the market has nonetheless been heartened by comments from the bank's chief executive that it will "return to a normal earnings environment in the fourth quarter".
The British share market made more modest gains as London's FT-100 index added 39 points to 6,506.
Yesterday, the Australian share market essentially marked time, with public holidays in a number of states, including New South Wales.
The All Ordinaries index edged up 1 point to close at 6,580.
A mixed night for the banking sector saw Commonwealth Bank shares rise 21 cents to $56.60 but ANZ lost 9 cents to $29.61.
A slow day also saw BHP Billiton shares slip 5 cents to $44.50
Overnight on the Sydney Futures Exchange the Share Price Index 200 contract closed 74 points up at 6,703.
The 10-year bond contract was unchanged at 93.83 with the implied yield at 6.17 per cent.
On foreign exchange markets, the Australian dollar reached a new peak overnight of 89.50 US cents, the strongest it has been against the greenback since February 1989.
At around 7:00am AEST, the dollar was being quoted at 89.44 US cents, up 0.3 cents on yesterday's local close.
On the cross-rates, it was at 0.62583 euros, 103.51 Japanese yen, 43.77 pence sterling and against 1.167 New Zealand dollars.
The gold price was fairly steady at around $US747 an ounce and the spot price of West Texas crude had fallen $US1.33 to $US80.31 a barrel. © 2007 Australian Broadcasting Corporation
