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6 October 2011 Last updated at 09:47 GMT
![EC President Jose Manuel Barroso](D:\Program Files\ABS\Auto Blog Samurai\data\wo22\1\_55859467_013091890-1.jpg)
The main markets in London, Frankfurt and Paris were about 2% up, after Hong Kong closed 5.6% higher.
European Commission President Jose Manuel Barroso said in a television interview that there were plans for co-ordinated action to recapitalise banks.
More details of any action plan could come later at a European Central Bank press conference.
There have been a flurry of reports and comments in recent days that European authorities have negotiated plans to bolster banks and boost bailout funds.
On Thursday, Mr Barroso fuelled expectations further, telling Euronews TV that the EU executive was proposing "co-ordinated action" to the 27 European Union nations to bolster banks.
The intention was to "recapitalise banks and get rid of toxic assets they may have".
Continue reading the main storyYou can see this as creeping progress towards putting adequate shock absorbers into the eurozone's financial system.”End Quote
![image of Robert Peston](D:\Program Files\ABS\Auto Blog Samurai\data\wo22\1\_53112551_525888c7-a762-4034-9285-426d75f45c3c.jpg)
Then German Chancellor Angela Merkel is due to hold talks in Berlin with Mr Trichet as well as the heads of the International Monetary Fund, the World Bank, the OECD and G20.
On Wednesday, Mr Merkel said she was in favour of a co-ordinated recapitalisation of European banks if that was deemed necessary.
Expectations that there will be action to bolster banks and boost European bailout funds began on Monday, when Olli Rehn, European commissioner for economic affairs, said there was "an increasingly shared view that we need a concerted, co-ordinated approach".
In an interview with the Financial Times, he said there was "a sense of urgency among ministers and we need to move on".