The moves came despite a host of simmering global feuds. Oil prices ticked higher as the US reimposed some sanctions on Iran, while the Turkish lira bounced back almost 2percent from its worst day in a decade on Monday that had been prompted by a row with Washington.
The mood lifted overnight as Chinese stocks rebounded 2.7percent on hopes of fresh government spending, following a four-day sell-off that had knocked them down about 6percent.
London, Paris and Frankfurt followed by rising 0.6 to 0.9percent as Europe’s investors cheered results from Italy’s biggest bank, UniCredit, and oil firms and miners gained on the rise in crude prices.
“The Chinese have stabilised the yuan, the lira hasn’t been annihilated this morning, so once the sharp forex moves have calmed down, and as long as the (company) earnings are good, you have a more risk-friendly environment,” said Société Gé* érale strategist Kit Juckes.