Markets partly recover amid fears turmoil is not over yet

Shares on Wall Street have risen and many Asian and European markets staged a recovery after this week's global stock market rout, but analysts warned: "We might not be out of the woods."

- Julia Kollewe

The FTSE 100 index in London rose 18 points, or 0.2%, yesterday to close at 8,026.69, after losing 166 points, or 2%, on Monday, its biggest one-day-points drop in more than a year.

Germany's Dax edged up by 0.1%, although France's Cac slipped by 0.3% after earlier rising, and the Italian bourse slid by 0.6%.

On Wall Street, the Dow Jones edged up by 1.2% in morning trading, while the broader S&P 500 rose by 1.7%. The Nasdaq climbed 1.5%, after Wall Street's worst day in almost two years on Monday.

Tokyo's Nikkei 225 index closed 10.2% higher-up 3,217 to 34,675, a record daily points rise - as investors bought into bargains after the 12.4% rout the previous day that triggered a fall in European and US markets. The Nikkei experienced its biggest drop in 37 years on Monday. Other markets in Asia also recovered, but Hong Kong's Hang Seng was among a small number that recorded further modest losses, slipping by 0.3%.