Dow Jones

Global markets bounced back sharply last month, with some of the most heavily sold off equities in Europe up by huge margins.

Shares on the major US stock markets shed more than 2% overnight as weak manufacturing data from the US, Europe and China fuelled fears of a global slowdown.

The FTSE 100 fell alongside other major markets across Europe today, after the Federal Reserve cut its growth forecast for the US economy.

US markets slipped into the red sharply overnight after the Federal Reserve announced it will extend its Operation Twist programme, instead of introducing a third round of quantitative easing.

Spanish 10-year bond yields have dipped back below 7% today, as investors eye an expected stimulus package from the US Federal Reserve, and with sentiment lifted after Greece managed to form a new government.

Wall Street opened higher this afternoon as investors anticipated central bank stimulus measures would be forthcoming when the Federal Reserve's policy meeting concludes on Wednesday.

Yesterday's relief rally prompted by the Greek election on Sunday failed to translate to Asian markets overnight, as concerns over Spain's economy dominated trading.

Banking stocks across Europe were falling this afternoon, with investors fretting over Spain's ability to fund itself after yields spiked above 7% once again.

The FTSE 100 and a host of European markets were tumbling today after a warning from Moody's about Spain's credit rating spooked nervous investors.

London's leading share index climbed in early trading after a strong session on Wall Street yesterday.