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UPDATE 2-Bourses hold gains as US futures rise.
(From FT Investor (Stories))
LONDON (FT.com) - European equity markets on Tuesday morning finally got some respite from the recent sell-off as investors brushed aside overnight weakness for Wall Street and focused instead on early gains for US stock index futures.
The pan-European FTSE Eurotop 100 index rose 1.4 per cent to 1,836.62 while the Xetra Dax index in Frankfurt was 1.1 per cent higher.
In Paris, the CAC 40 was up 1.3 per cent and London's FTSE 100 firmed 1.2 per cent. See London markets report
But strategists warned that the markets were far from out of the woods. "Political uncertainty and a supreme loss of investor confidence are the two main reasons why Western stock markets are currently being decimated," said David Buik at spread-betting service Cantor Index.
"September and October are living up to their unenviable reputation of being the worst two trading months of the year, clearly exacerbated by the hum of war drums thumping in our ears," he added.
Overnight on Wall Street, the Dow Jones Industrial Average fell 1.4 per cent and the Nasdaq Composite eased 1.8 per cent.
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