London: Global stock markets rose Thursday on renewed confidence in the US recovery after days of wild swings, but dealers warned that the spectre of the slowing Chinese economy threatens more turbulence ahead.

Equities in Europe and New York climbed on revised US data released ahead of Wall Street’s opening showing stronger US growth in the second quarter at 3.7 per cent, compared with the previous estimate of 2.3 per cent.

“The US economy continues to perform on a consistent basis ... (showing) that its economic recovery is sustainable ... The United States is leading the global economy as it has been since late last year,” said FXTM chief market analyst Jameel Ahmad.

Following global cues, Dubai index lead the regional gains, ending more than 4 per cent higher. Abu Dhabi closed 3.03 per cent higher at 4,461.09, while Saudi’s Tadawul index closed 2.98 per cent higher at 7,604.32.

The news gave comfort to investors rattled by slagging Chinese growth, and sent Wall Street indices Thursday at the opening between 1.3 per cent to 1.48 per cent higher, after snapping a six-day losing streak Wednesday closing about four per cent ahead.

In midafternoon deals in Europe on Thursday, the Frankfurt and Paris stock exchanges rebounded by almost 3.5 per cent, while London was nearing three per cent gains.

All three main European bourses slumped around one per cent Wednesday on investor jitters over China’s woes.

“The fact that we’re seeing markets rebounding strongly today following a similarly strong rally in the US on Wednesday suggests the fear is now passing,” said Oanda analyst Craig Erlam.

Asian equities also rallied Thursday after several tumultuous days, but dealers cautioned that enduring concerns about China would spell more volatility.

Shanghai soared 5.34 per cent to end the worst five-day rout for almost 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, representing some 13 per cent of global GDP.

In addition, after a strong rise in the last hour of Shanghai trade, brokers said there was speculation over state buying or a possible top-level meeting of the State Council, or cabinet, which could detail more measures to support the market.

“There were external funds flowing in, but it’s uncertain if it was the national team,” Shenwan Hongyuan analyst Gui Haoming said, referring to entities which trade on behalf of the government.

Qian Qimin, also of Shenwan Hongyuan, added investors were “expecting pension funds will enter the market.”

China said Sunday that its huge state pension fund will be allowed to invest up to 30 per cent of assets — which totalled 3.5 trillion yuan at the end of 2014 — in stocks.

Elsewhere in Asia, Hong Kong shares hurtled 3.60 per cent higher, Tokyo gained 1.08 per cent and Sydney added 1.17 per cent.

“For now there is quite a bit of relief that stocks in China are finally staging a moderate and long-awaited bounce back,” said analyst Markus Huber at brokerage Peregrine & Black.

World markets had suffered a torrid start to the week on “Black Monday”, when Shanghai collapsed by almost 8.50 per cent and sparked fears China’s slowdown could herald a global recession.

But investors cautioned that the rout, which wiped $8 trillion off world shares in just over two weeks and battered commodities and emerging market currencies, was far from over.

“Black Monday created a lot of fear in the markets leaving the central bank with little option but to step in a stop the rout,” said Erlam, who noted that despite restored confidence markets reflected Thursday, worries about China persist.

“Sentiment is likely to remain fragile for a little while and more surges in volatility is likely to create more panic in the markets,” he said.

Concerns the US could raise rates as early as next month have also been heaping pressure on world markets. But on Wednesday, the head of the New York branch of the Fed, William Dudley, said China turmoil had weakened the argument for a rate hike next month.

In London currency trading, the dollar bought 120.56 yen up from 119.98 yen in late New York on Wednesday.

The European single currency rose to 135.41 from 135.72 yen, but fell against the dollar to $1.1234 from $1.1312.