Europe's main stock markets ended with gains on Tuesday, showing a rebound on firm US confidence data before a US Federal Reserve decision on the future of monetary stimulus.
Despite strong pressure on the currencies of many emerging markets, European stock indices were firm.
Analysts said that emerging markets took some support from a decision by the Turkish central bank to hold a crisis meeting on defending the lira later on Tuesday, sending a strong signal that it would raise rates.
The central bank of India surprised with a quarter-point rate rise to 8.0 percent.
US data showed a rise in consumer confidence for the second month running but orders for US manufactured durable goods fell 4.3 percent in December, dragged down in part by declines in orders for aircraft and autos.
The euro dipped initially against the dollar but then rallied to show a slight fall since the close on Monday.
The euro was at $1.3663 from $1.3670 late on Monday.
The dollar firmed to 102.81 yen from 102.56 yen.
Gold fell to $1,251.25 an ounce from $1,260.50.
Analysts said they expected the Fed to continue its policy of reducing monetary stimulus to the US economy.
Wall Street was mostly higher in morning trading, notwithstanding the poor durable goods report and a disappointing outlook from Apple that pushed the Nasdaq into the red.
In London, where official data showed that the British economy expanded at the fastest rate last year since before the financial crisis, the FTSE 100 index gained 0.33 percent or 21.67 points from the close on Monday to 6,572.33 points.
British gross domestic product grew by 1.9 percent in 2013, the biggest expansion since 2007.
In Frankfurt, the Dax index, which has lost more than 3.0 percent since Wednesday, gained 0.62 percent to 9,406.91 points.
Shares in industrial giant Siemens gained 1.57 percent to 98.94 euros on a strong rise in quarterly net profit. Shares in BASF chemicals rose 1.96 percent to 79.13 euros.
Commerzbank stock was up 1.80 percent at 13.0 euros and Allianz insurance gained 1.61 percent to 126.10 euros.
And in Paris, the CAC 40 index countered three sessions of falls by surging 0.98 percent or by 40.73 points to 4,185.29 points.
The Madrid market was boosted by 1.24 percent to 9,879.1 points. A government estimate that the economy could grow this year by about 1.0 percent helped reverse two days of heavy falls on concern about a currency crisis in Argentina.
In Milan, the market gained 0.91 percent to 19,448 points. Stock in clothing manufacturer Yoox jumped 10.99 percent to 28.89 euros and shares in the Berlusconi family company Mediaset gained 6.29 percent to 3.85 euros.
However Italian bank shares remained under pressure from concerns about possible capital increases.
Analyst Alastair McCaig at IG finance firm in London commented that the rally in London and European markets came after sharp falls in the three previous sessions.
On the foreign exchange market, emerging market currencies were showing the most volatility, he said.
New York stocks were cheered by strong earnings reports from Pfizer, Ford Motor and others, even as durable goods orders plunged in December by 4.3 percent. Analysts had projected a 2.1 percent increase.
"All major European benchmarks have made gains ... as buyers step in to find value after three sessions of pretty heavy losses," said Toby Morris, a senior trader at CMC Markets.
Asian stock markets had closed mixed after large falls in the previous session.
"Emerging markets continue to look like the emerging theme for this quarter, with today's bounce coinciding with the strengthening of developing nation currencies overnight, with the (Indian) rupee, (South African) rand, (South Korean) won and (Turkish) lira all reversing recent routs," added Morris.
There is growing concern that with the Fed on a course of winding down its stimulus programme, the cash that has provided strong investment support for emerging economies -- from Argentina and South Africa to Indonesia and India -- could dry up, leading to a flight of capital.
Adding to that is a string of weak Chinese data, including last week's manufacturing figures, that have raised questions about the world's number-two economy, which is a key driver of growth.
Eyes are now on the Fed's latest two-day meeting, which kicks off on Tuesday. Despite the latest turmoil, there is speculation it will cut a further $10 billion from its monthly asset purchases, to $65 billion, following a similar announcement last month.
Europe’s main stock markets ended with gains on Tuesday, showing a rebound on firm US confidence data before a US Federal Reserve decision on the future of monetary stimulus.
Despite strong pressure on the currencies of many emerging markets, European stock indices were firm.
Analysts said that emerging markets took some support from a decision by the Turkish central bank to hold a crisis meeting on defending the lira later on Tuesday, sending a strong signal that it would raise rates.
The central bank of India surprised with a quarter-point rate rise to 8.0 percent.
US data showed a rise in consumer confidence for the second month running but orders for US manufactured durable goods fell 4.3 percent in December, dragged down in part by declines in orders for aircraft and autos.
The euro dipped initially against the dollar but then rallied to show a slight fall since the close on Monday.
The euro was at $1.3663 from $1.3670 late on Monday.
The dollar firmed to 102.81 yen from 102.56 yen.
Gold fell to $1,251.25 an ounce from $1,260.50.
Analysts said they expected the Fed to continue its policy of reducing monetary stimulus to the US economy.
Wall Street was mostly higher in morning trading, notwithstanding the poor durable goods report and a disappointing outlook from Apple that pushed the Nasdaq into the red.
In London, where official data showed that the British economy expanded at the fastest rate last year since before the financial crisis, the FTSE 100 index gained 0.33 percent or 21.67 points from the close on Monday to 6,572.33 points.
British gross domestic product grew by 1.9 percent in 2013, the biggest expansion since 2007.
In Frankfurt, the Dax index, which has lost more than 3.0 percent since Wednesday, gained 0.62 percent to 9,406.91 points.
Shares in industrial giant Siemens gained 1.57 percent to 98.94 euros on a strong rise in quarterly net profit. Shares in BASF chemicals rose 1.96 percent to 79.13 euros.
Commerzbank stock was up 1.80 percent at 13.0 euros and Allianz insurance gained 1.61 percent to 126.10 euros.
And in Paris, the CAC 40 index countered three sessions of falls by surging 0.98 percent or by 40.73 points to 4,185.29 points.
The Madrid market was boosted by 1.24 percent to 9,879.1 points. A government estimate that the economy could grow this year by about 1.0 percent helped reverse two days of heavy falls on concern about a currency crisis in Argentina.
In Milan, the market gained 0.91 percent to 19,448 points. Stock in clothing manufacturer Yoox jumped 10.99 percent to 28.89 euros and shares in the Berlusconi family company Mediaset gained 6.29 percent to 3.85 euros.
However Italian bank shares remained under pressure from concerns about possible capital increases.
Analyst Alastair McCaig at IG finance firm in London commented that the rally in London and European markets came after sharp falls in the three previous sessions.
On the foreign exchange market, emerging market currencies were showing the most volatility, he said.
New York stocks were cheered by strong earnings reports from Pfizer, Ford Motor and others, even as durable goods orders plunged in December by 4.3 percent. Analysts had projected a 2.1 percent increase.
“All major European benchmarks have made gains … as buyers step in to find value after three sessions of pretty heavy losses,” said Toby Morris, a senior trader at CMC Markets.
Asian stock markets had closed mixed after large falls in the previous session.
“Emerging markets continue to look like the emerging theme for this quarter, with today’s bounce coinciding with the strengthening of developing nation currencies overnight, with the (Indian) rupee, (South African) rand, (South Korean) won and (Turkish) lira all reversing recent routs,” added Morris.
There is growing concern that with the Fed on a course of winding down its stimulus programme, the cash that has provided strong investment support for emerging economies — from Argentina and South Africa to Indonesia and India — could dry up, leading to a flight of capital.
Adding to that is a string of weak Chinese data, including last week’s manufacturing figures, that have raised questions about the world’s number-two economy, which is a key driver of growth.
Eyes are now on the Fed’s latest two-day meeting, which kicks off on Tuesday. Despite the latest turmoil, there is speculation it will cut a further $10 billion from its monthly asset purchases, to $65 billion, following a similar announcement last month.
