(MENAFN- AFP) European equities rebounded Wednesday in a technical bounce after slumping the previous day on low oil prices and financial strains in China and Greece, dealers said.
London's benchmark FTSE 100 index rose 0.15 percent to stand at 6,538.89 points around midday in the British capital.
The CAC 40 in Paris added 0.37 percent to 4,279.64 points and Frankfurt's DAX 30 won 0.66 percent to 9,887.08 compared with the closing level on Tuesday, when they tumbled by more than 2.0 percent.
The European single currency firmed to $1.2381 from $1.2378 late in New York on Tuesday.
Global markets slumped Tuesday as oil prices struck fresh five-year lows, China clamped down on speculative trading and Greece sparked renewed worries about the eurozone.
Share prices had already dived Monday on poor Chinese trade data and worse-than-expected GDP data in recession-mired Japan.
"European shares are trading higher, managing to stage a rebound after two days of hefty losses," said Peregrine & Black brokers analyst Markus Huber.
"Sharply outperforming US markets and better-than-expected Chinese inflation data are providing European markets with a much needed lift," he added.
Asian stock markets traded mixed on Wednesday, with fresh fears about Greece and further losses in oil prices offset by a strong rebound in Shanghai, a day after suffering its worst loss in five years.
Sydney shed 0.45 percent and Tokyo sank 2.25 percent but Hong Kong won 0.16 percent and Shanghai surged 2.93 percent.
- China stimulus hopes -
Chinese inflation slowed to a five-year low of 1.4 percent in November, official data showed, sparking hopes of more economic stimulus measures, dealers said.
Markets were meanwhile jarred Tuesday by news that Greece had brought forward a presidential election, raising fears of fresh political instability.
Members of the Greek parliament agreed to hold a poll to replace President Karolos Papoulias on December 17 instead of February, when it was due.
The election is a key test for Prime Minister Antonis Samaras, who will be forced to call snap general elections if his candidate fails to garner enough support.
"A Greek gamble joined the ever-pesky plunging oil (price) yesterday to cause more havoc on the global markets," said analyst Connor Campbell at traders Spreadex.
"Whilst today has seen the indices recover slightly, the weight of economic woes on the world stage is still causing bearish sentiment."
In London on Wednesday, Ashtead Group was the top gainer with shares surging 8.36 percent to 1,167 pence after the British construction company posted soaring quarterly profits.
- BG hit by disposal -
On the downside, BG Group shares sank 1.26 percent to 887.5 pence.
The energy producer on Wednesday announced the sale of its Australian gas pipeline business for US$5.0 billion as part of a plan to shed non-core assets.
Elsewhere on Wednesday, the euro increased to 79.03 British pence from 78.97 late on Tuesday in New York. The British pound was unchanged at $1.5665.
On the London Bullion Market, the price of gold rose to $1,228.25 an ounce from $1,227 late on Tuesday.
Wall Street stocks Tuesday shook off much of the negative momentum from Asian and European equity markets, finishing the day mixed after a bruising open.
The Dow Jones Industrial Average dropped 0.29 percent and the broad-based S&P 500 slipped 0.02 percent, while the tech-rich Nasdaq Composite Index rose 0.54 percent.
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