European stocks rose for a second day as government measures to shore up the financial system bolstered confidence in banks, offsetting a retreat in mining companies. US index futures and Asian shares rose.

Royal Bank of Scotland Group Plc and Barclays Plc gained more than 5 percent after Bank of England Governor Mervyn King signaled he may take more steps to revive the credit market.

Europe's Dow Jones Stoxx 600 Index added 1 percent to 199.48 at 11:49 am in London, reversing earlier declines of as much as 1.8 percent. The gauge yesterday rallied the most in six weeks after the US government guaranteed $306 billion of troubled Citigroup Inc assets and lawmakers pledged a stimulus package for the world's largest economy.