Financial markets rallied yesterday in anticipation that the financial rescue deal being put together in Washington will succeed.
The United States Senate is scheduled to vote this morning on its version of the $US700 billion ($NZ1.05 trillion) rescue package two days after the House of Representatives voted it down.
The package before the Senate would be similar to the House of Representative's version with two additions, websites reported.
The additions included a higher limit for insured bank deposits, and tax breaks for businesses and alternative energy.
If the Senate approves the package today, it will go before the House, which does not reconvene until early Friday.
Forsyth Barr broker Peter Young said a lot was riding on the deal, not only for sharemarkets but also for the world economy.
There was a lot of nervous selling around the world on Tuesday.
Rumours yesterday that the deal would be signed saw investors pile back into the market.
"If there are signs tomorrow that the deal is off we could have a significantly bad day.
"But when the deal is signed, we will have a significantly good day and the markets will settle somewhat."
The NZX-50 was up nearly 100 points, or 3.2%, to close at 3187 on volume of $134 million which Mr Young said was a good trading day for New Zealand.
The dollar closed at US67.02c, down slightly.
There would be some anxious New Zealand brokers getting up tonight to check their computers for news on the vote, he said.
The IMF has called on the US to act urgently to shield its economy from an escalating credit crisis.
Europe must ready plans in case banking problems spread.
"We're right at the moment where action is needed," IMF Managing-director Dominique Strauss-Kahn told Reuters.
"A non-perfect plan is better than no plan at all."
As the crisis had spread beyond Wall Street, European countries had stepped up their efforts to avoid bank defaults, but the lack of a pan-European regulator made it more difficult to respond to the crisis, Mr Strauss-Kahn said.
The EU rules made it more difficult than in the US to act across borders, he said.
