European shares advanced after four straight days of declines. US shares rallied the most in six years yesterday (September 18), while the MSCI Asia Pacific Index rebounded from a three-year low today.

Stocks from London to Moscow surged after the US government started planning new laws to halt the credit-market meltdown and UK and American regulators cracked down on short sellers.

Deutsche Bank AG and Credit Suisse Group climbed while Macquarie Group, Australia`s largest investment bank, soared after US Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S Bernanke proposed moving troubled assets from the balance sheets of financial companies into a new institution.
HBOS Plc advanced as the UK`s Financial Services Authority banned short selling financial shares for the rest of the year.

UK`s benchmark index FTSE 100 gained 291.70 points, or 5.98%, to trade at 5,171.70.

French benchmark index CAC 40 advanced 204.36 points, or 5.16%, to trade at 4,162.22.

Germany`s benchmark index DAX rose 218.87 points, or 3.73%, to trade at 6,082.29. (1.25 p.m., IST)