Europe’s main markets rebounded yesterday, erasing losses earlier in the week, with Frankfurt’s DAX 30 index finishing up 3.18% and the CAC 40 in Paris gaining 3.49%.

After a week spent yo-yoing between losses and gains, the FTSE 100 made up all its losses, closing at 6,247.9 points today – 0.9 higher than yesterday’s close, and 60 points higher than it finished last week.

On Wednesday, Australian, US and some Asian stocks rose slightly, but turmoil continued in Europe.

The prices of a barrel of Brent and US light crude were both up about 3.5%, taking the latter to just shy of US$40.

Shanghai soared 5.3 per cent to end the worst five-day rout for nearly two decades, cheered partly by this week’s interest rate cut from the People’s Bank of China (PBoC) aimed at boosting the world’s second-largest economy, which represents some 13 per cent of global GDP.

Global markets were all hit on Monday after weaker than expected manufacturing data prompted fears of an economic slowdown.

“After a hectic roller-coaster of a week across financial markets, many will be glad to see the back of it”, Brenda Kelly, analyst at London Capital Group, wrote in a note.

Michael Hewson at CMC Markets said: “Now the talk is less of when the Fed will raise rates but more of whether they should, or even whether they should implement further easing in the form of QE4″.

“These price declines will benefit the US and European economies over time, but will hurt select commodity-exporting nations, particularly emerging nations, depressing their currencies, forcing changes in monetary policy and affecting global trade”, he added.

Markets across Asia also closed the day higher. As the market increasingly pushes out expectations for a U.S. interest rate hike to December from September, investors will be listening closely to the Federal Reserve for clues as to the exact timing of the next move. The dollar jumped on the news, with the pound falling to $1.542 against the greenback.