The dollar broke its fall today and stocks rose in Europe and Asia as markets steadied after yesterday's turbulence and faced the prospect of a long war in Iraq.
Investors are afaid a long war in Iraq could derail the global economy, and sentiment reports from the US and Japan highlighted the gloomy mood.
European shares opened higher as US stock index futures rose, indicating Wall Street would gain at the open. The euro eased to $1.0905 from $1.0921 after hitting a two-week high of $1.0933 yesterday.
The FTSE Eurotop 300 index of blue chips, which fell 3.6 per cent yesterday, was 1.08 per cent higher; the narrower DJ Euro STOXX 50 index was 1.47 per cent ahead.
"Markets are facing a new kind of uncertainty. First we had 'will there be a war?', then 'when will it start?' now we are troubled by how long it will last," said Mr Gert de Mesure, head of equity strategy at Delta Lloyd Securities in Antwerp.
Japanese shares made slight gains. The Nikkei average closed 0.18 per cent higher after yesterday's 3.7 per cent fall. The broader TOPIX index rose 0.12 per cent.
Asian share markets were also hit by the flu-like severe Acute Respiratory Syndrome virus, which is hurting tourism, dampening retail sales and slowing corporate activity.
Last night the Dow Jones Industrial average closed down 1.89 per cent and the tech-dominated Nasdaq ended 2.08 per cent lower. The Dow fell 4.19 per cent in the first quarter, and the Nasdaq has eked out a 0.42 per cent gain.
Oil prices were mixed with US light crude for May was down 19 cents a barrel at $30.85l; Brent crude futures were up nine cents at $27.27.