Germany's DAX rose 1% to 13,174.34 while in France the CAC 40 climbed 1.1% to 5,893.98. Britain's FTSE 100 surged 1.3% to 7,423.93. Wall Street looked set for more gains, with the future contract for the S&P 500 up 1% to 3,277.70. The Dow future also gained 1%, to 28,638.00.
The communist party newspaper People's Daily said in a tweet that another 400 billion yuan in funds went into the markets following the People's Bank of China's injection of a net 150 billion yuan on Monday. "Extra liquidity courtesy of Chinese central bankers, instructions from authorities `not to panic' and perhaps some state-backed institutional buying seems to have done the trick," Jasper Lawler of LCG said in a commentary.
Overnight, U.S. stocks had recovered some of their losses from earlier weeks, though a warning signal of recession in the bond market was still flashing red. and oil tumbled on worries about weakened demand. The S&P 500 rose 0.7%, to 3,248.92. The Dow Jones Industrial Average picked up 0.5%, to 28,399.81, and the Nasdaq added 1.3%, to 9,273.40.