Stock markets in Europe and the US are up amid volatile trading as continued fears over the health of global financial institutions cause large swings in the price of shares.
As the banking sector came under particular pressure, European Union finance ministers meeting in Luxembourg agreed on Tuesday to more than double the minimum level of bank deposit protection in Europe to $68,000.
Christine Lagarde, the French finance minister, whose country holds the EU's rotating presidency, said: "We have agreed to assure the solidity and stability of our financial system and carry out any measure to reach that objective.
"Europe is united in the face of the financial crisis and determined to act in a co-ordinated way."
However, the agreement fell short of a minimum level of $136,000 that had been proposed prior to the meeting amid concerns in poorer Eastern European countries that would have struggled to meet that obligation.
Nadim Baba, Al Jazeera's correspondent in Luxembourg, said people across Europe are worried that ministers are not acting quickly enough to bring about some kind of a bail-out plan.
"Medium and big-sized businesses haven't been hit too hard but there is news today that the automobile industry is Germany is starting to be hit," he said.
"German carmaker Adam Opel is stopping production at one of its plants for three weeks because of falling demand. Meanwhile, the German unit of Ford is laying 200 part-time people off already as a response to the global financial crisis," Baba said.
Iceland loan
Earlier on Tuesday, Iceland's government announced that it had nationalised Landsbanki, its second-largest bank, and had held talks to secure a $4bn loan from Russia to prop up the country's finances.
Iceland had already suspended trading of shares in its major banks on Monday, with the kroner losing about 30 per cent of its value against the euro.
European markets rose on Tuesday's opening, fell soon after then rose again in afternoon trading.
Frankfurt's DAX 30 was up 1.34 per cent and the Paris CAC 40 rose 3.02 per cent.
London's FTSE 100 of leading shares was up 2.99 per cent while in New York the Dow Jones opened up 0.59 per cent.
Asian plunge
The developments in Europe came after Asian stocks plunged again on Tuesday, with Tokyo sliding 3.03 per cent to a near five-year low.
Investors remained nervous, although a hefty cut in Australian interest rates brought some relief to Asian markets.
The Reserve Bank of Australia cut rates by a full percentage point, double the amount that was expected and the biggest rate cut since 1992.
The Bank of Japan also injected 1 trillion yen ($9.8bn) into money markets - the 15th straight business day that the Japanese central bank has poured money into the short-term money market as part of efforts by the world's central banks to ensure a flow of cash vital to the financial system.
But fund injections by central banks have so far been largely ineffective, as have individual government plans to bail out failing financial institutions in the US and Europe.