A meeting between US Treasury Secretary Tim Geithner and the German finance minister has boosted hopes of imminent action on the eurozone crisis, according to BBC News. The pair expressed confidence in the eurozone's reform efforts and emphasised the need for coordination.
Mr Geithner met Wolfgang Schaeuble ahead of a meeting with European Central Bank head Mario Draghi.
Markets rose across Europe on anticipation of measures to tackle Spain and Italy's high borrowing costs. Spain's Ibex closed 2.8% higher, the FTSE 100 rose 1.2% and Germany's Dax jumped 1.3%.
They "emphasised the need for ongoing international co-operation and coordination to achieve sustainable public finances, reduce global macroeconomic imbalances, and restore growth," a joint statement said.
The two men also "expressed confidence in euro area member states' efforts to reform and move towards greater integration".
The timing of these meetings, just three day's ahead of Thursday when the ECB will announce its latest decision on interest rates, has added to speculation that it may also announce that it is restarting its bond-buying programme, known as the Securities Markets Programme (SMP).
The SMP, which was suspended at the end of January, enables the ECB to buy government debt from banks helping to reduce the cost of borrowing for governments.
In recent days, European leaders have pledged to act in support of the eurozone.
Eurogroup leader Jean-Claude Juncker joined in late on Sunday when he called for action to cut Spain's debt costs.
"We will work in close agreement with the ECB, and we will, as ECB President Mario Draghi said, see results.
"I don't want to drive expectations, but I must say, we have reached a decisive phase," Mr Juncker said in interviews with German and French press.