BBC: Global shares have rebounded after the US Federal Reserve slashed interest rates in an attempt to pull the world's biggest economy away from a recession.
The UK's FTSE 100 index closed 2.9% higher after falling more than 4% earlier. France's Cac also bounced back but Germany's Dax closed 0.3% down.
In the US, the Dow Jones and S&P 500 indexes fell, but their declines were less sharp than they had been earlier.
The Fed cut its main interest rate to 3.5% from 4.25% in a surprise move.
It came after global markets suffered their worst day since 9/11 on Monday, and as investors continued to dump shares in early trading on Tuesday.
The fears about slowing global growth were so pronounced that they spread to other asset classes, hurting commodities such as oil and gold.
But most stock market indexes and commodities quickly gained ground after their earlier losses in response to the Fed's biggest interest rate cut in more than two decades. Stocks rebound on Fed’s rate cut >>>
TIMESONLINE:
US shares plunge despite interest rate cut: The Dow Jones falls 1.1 per cent after authorities move to stop a recession by making the biggest cut to interest rates in 26 years
BBC:
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