On the eve of the US election, it has emerged that Treasury Secretary Hank Paulson is considering expanding the $700 billion (£442 billion) rescue scheme to include financial companies other than banks and insurers.

But his latest plan to help America's stricken economy may be complicated by the results of the poll that is expected to see Democrat Barack Obama elected President.

Insiders told the Wall Street Journal that the programme is showing early signs of success, and Paulson now may consider providing funds for companies such as GE Capital.

The original rescue was limited to buying troubled securities such as those linked to mortgages, but has developed rapidly to take into account fast-changing events.

Obama backs buying troubled assets and taking equity stakes while Republican John McCain favours using the money to buy mortgages.

Paulson has said he wants to involve the next administration in major decisions between now and January. Observers say Obama will quickly announce his choice for Treasury Secretary should he win. He may ask Paulson to stay on, but the favourite is former Clinton administration Treasury Secretary Larry Summers.

New York markets are expected to take a wait-and-see approach to the election, with futures suggesting the Dow will open up about 45 points. Oil was also treading water, with Brent crude down eight cents at $60.40.