The recent market turmoil has thrown into doubt expectations for a rate increase next month, with most economists now saying it’s off the table for now. The Dow has climbed nearly 1,000 points in the last two days, pushing it into positive territory for the week, along with the S&P 500 and the Nasdaq.

U.S. markets had failed to rebound the day before from sharp losses on Monday.

The Dow Jones Industrials, which had suffered double digit declines over the last five sessions, soared 619 points Wednesday, the third-highest point gain in its history. France’s CAC-40 added 2.1 per cent to 4,597.36 and Germany’s DAX gained 2.4 per cent to 10,240.92.

Markets around the world plunged earlier in the week as a slump in Shanghai shares fuelled worries over China’s economic health.

“Looking ahead, we … suspect that investors will be less anxious about China in due course, as it becomes apparent that her economy is not collapsing”, they wrote in a note to investors.

But traders said the market remained vulnerable to sudden selloffs, as investors who bought shares using margin financing continue to deleverage, and as China’s economic outlook remains weak. However, he also stated that the situation could still change before the Fed’s next policy meeting scheduled for mid-September. Markets in Singapore, Bangkok, New Zealand and Jakarta also rose. China’s main stock index logged its biggest gain in eight weeks.

Financial stocks were among the biggest decliners in early trading Thursday. The sector fell 0.6 percent. But Hong Kong’s Hang Seng index fell 0.5 percent to 21,305.17, and mainland China’s smaller Shenzhen Composite lost 3.1 percent.

The apparent inability of Chinese regulators to calm the markets has spooked investors already fretting over when the U.S. Federal Reserve will raise interest rates. U.S. stocks recovered, but then faltered with the Dow off by 1.3 percent at the close. Britain’s FTSE 100 gained 0.9 percent.

Japan’s Nikkei Index and South Korea’s KOPSI were among the bright spots, with the former rising 3.2 percent as the yen weakened.

Benchmark U.S. crude gained $1.46 to $40.06 a barrel in New York. Asian stocks rose Wednesday after a rocky start following Beijing’s decision to cut a key interest rate…

The resource-heavy Toronto index was boosted by a big jump in commodity prices that included a 10 per cent jump in the price of benchmark oil as the October contract shot up $3.96 to US$42.56 a barrel. The dollar slipped to 120.98 yen from 121.12 in late trading Thursday. The euro dropped 1.3 percent to $1.1380.