LONDON (Reuters) – Markets in Europe and the US rallied on Thursday after Wall Street's worst day since 2011, and global stock markets boosted global equity markets further towards their worst month since the financial crisis.
It was anything but easy to sail. The German DAX .DAX had reached a nearly two-year low, and the London FTSE. FTSE and the Paris CAC 40 .FCHI both had a 1/2-year low early after Japan fell overnight, but some stability emerged from.
The pan-European STOXX 600 was in positive territory, with the S & P 500 .SPX and the Dow Jones .DJI climbing 0.7 and the tech-heavy Nasdaq .IXIC rising 1.5 percent, losing 8 to 9 this month Percent.
Forex traders also made the Swiss franc CHF = and the Japanese yen JPY = security and Italian and Spanish bonds held their ground as Mario Draghi reaffirmed the European Central Bank's plans to cautiously eliminate its stimulus.
"Uncertainties regarding protectionism, vulnerabilities in emerging markets and volatility in financial markets remain high," Draghi said at the ECB's post-meeting press conference.
"Significant monetary stimulus is still needed," he said. But there was also an important summary. Is that enough (turbulence) to change our baseline scenario? No, "adding that he expected an agreement between Italy and Brussels on Rome's disputed budgets.
Investors have become increasingly nervous given high stock prices, faster interest rate hikes in the US and Italy, and a Sino-US trade war that could jeopardize world growth.
Almost 60 percent of the 2,767 shares of the global MSCI stock index .MIWD00000PUS are now in the bear market – a drop of 20 percent or more from recent highs.
The growing concern of the new populist coalition in Italy has increased.
Further problems in Asia had seen overnight the worldwide decline in the MSCI World near $ 7 trillion. Pan-Asia Pacific equities .MIAPJ0000PUS slipped more than two percent, while the Japanese Nikkei .N225 fell as much as four percent to a six-month low.
The only relief was that after a 2.5 percent decline, Chinese stocks were in the black at one point. .SSEC The new state support measures were unable to alleviate worries about the high level of debt and the customs war with the United States.
"If you're a company and you're responsible for an investment budget, there's so much uncertainty over Brexit over the coming years in the Brexit trade war," said Jim McCafferty, director of equity research. Asia ex-Japan at Nomura.
The stabilization of Europe was supported by the results of the Swiss bank UBS and the engineering giant ABB (ABBN.S), which contributed to the turmoil this week caused by grim warnings from US giant Caterpillar (CAT.N).
Wall Street built on its six-day defeat when Microsoft's reassuring results and Twitter's heavy advertising revenue were achieved. (TWTR.N) brought the technology shares prompt applause. [.N]
Google Parent Alphabet (991) and Amazon (AMZN.OBoth were both more than 2.2 percent above the results, while economic observers were reassured as the number of Americans receiving benefits dropped to a 45-year low.
The ECB's message that it will remain stable came after weak Eurozone economic data this week, which feared global growth, and a surprise slump in US housing sales.
It was not just the ECB in action. Turkey, which had stabilized in recent weeks after being at the center of emerging market problems, stopped its recent rate hikes in a move that, for once, did not unsettle markets.
In fact, the lira won. The bank almost doubled its interest rates to 24 percent this year after the Turkish currency fell 40 percent. TRY = Ankara brought to the brink of a full-blown currency crisis.
In the major currency markets, the euro rebounded to EUR 1.1410 after breaking through a long-standing bulwark of USD 1.1430.
Against a currency basket, the dollar fell from a high of nine weeks to 96,339 .DXY. For the first time in days, the Japanese yen was at JPY 112.28 = barely used against the safest Japanese.
The pound also rose seven weeks to £ 1.2887 after falling 0.8% overnight. Oil prices rose again after being weighed down by concerns over global growth in recent sessions.
The British crude LCOc1 was last at $ 76.50 per barrel, while the US crude was at 66.63 CLC1. Safe-Haven Gold XAU = was slightly weaker at $ 1,236.76 an ounce.
"Expect brave rallies," said Robin Bieber, technical analyst at London brokerage PVM Oil.
Additional reporting by Christopher Johnson in London and Swati Patel in Sydney; Editing by Larry King