European markets rose for a third day, led by UBS and Fortis.

European markets rose for a third day, led by UBS and Fortis. By midday in London, the FTSE 100 gained 1.47 per cent to 5,032.35, the CAC 40 in Paris gained 1.06 per cent to 4,097.57 and Frankfurt's Dax gained 0.59 per cent to 5,840.31.

UBS, the European bank with the most losses from the global credit crisis, surged 7.7 per cent after saying it cut holdings of mortgage securities to have its first profitable quarter in more than a year. Fortis, the bank bailed out by Belgium, the Netherlands and Luxembourg on Monday, gained 17 percent.

The US Senate last night passed the USD 700 billion financial-market rescue package with revisions for the House of Representatives to approve the measure, following the House's rejection of an earlier version.

The package, which was rejected earlier by the lower house of Congress, authorises the purchase of troubled assets from financial companies. It passed the Senate with a 74-25 vote.

The revised version of the bailout package contains two provisions favored by House Republicans: One raises the limit on federal bank-deposit insurance; the other reiterates the authority of securities regulators to suspend asset-valuing rules that corporate executives blame for fueling the crisis.