European and US stock markets bounced back on Thursday, recovering from a sharp sell-off that had wiped billions off share values. London's FTSE 100 closed up 1.77%, while France's CAC 40 rose 1.97% and Germany's DAX gained 1.94%. In the US, the Dow Jones Industrial Average ended 0.74% higher at 15,882.68 points, and the S&P 500 finished up 0.52% at 1,868.99.
The recovery was driven by comments from European Central Bank President Mario Draghi, who hinted at further stimulus measures if needed, saying there were 'no limits' to action. This helped calm investor nerves after Wednesday's turmoil, which saw the FTSE 100 enter a bear market, having fallen 20% from its April 2015 record high.
Oil prices also rebounded, with Brent crude rising 5.9% to $29.52 a barrel and US West Texas Intermediate crude climbing 5.3% to $29.79. However, prices remain near 12-year lows amid ongoing oversupply concerns. The International Energy Agency had earlier warned that markets could 'drown in oversupply' in 2016.
Analysts urged caution against panic. Patrick Thomson of JP Morgan Asset Management noted that the US economy is in 'pretty good shape', while Capital Economics forecast global growth to pick up from 2.5% in 2015 to 3% in both 2016 and 2017.
