European Markets Make Gains; Asian Markets Tumbles

Stock markets in Europe began to rebound on Wednesday following Tuesday’s large losses, but Asian markets plummeted, prompting quick action from central banks to calm investors' nerves.

Meanwhile, all major U.S. financial markets remain closed on Wednesday. It was the first time since the end of World War II that the New York Stock Exchange was closed for two straight, non-holiday weekdays.

The British FTSE climbed 136.1 points on Wednesday, after losing nearly 5.7% of its value on Tuesday. The German DAX index was also up 61.67 points Wednesday after a significant decline the day before.

The Japanese Nikkei Index tumbled to a 17-year low of 9,610.10. It is the first time the index had dipped below 10,000 since August 1984, Reuters reported. Other Asian markets including Singapore suffered major losses.

The European Central Bank said it lent about $63 billion of overnight funds in an unscheduled tender, about the same as it typically lends in two-week money at regular weekly auctions, Bloomberg reported.

Also, the Bank of Japan pumped almost $17 billion into the money markets. These banks signaled they may be ready to reduce interest rates to avert the risk of a global recession.

In an e-mailed noted to investors from Goldman, Sachs & Co., and obtained by Bloomberg, strategists said that the attacks are likely to have an adverse impact on consumer and business confidence around the world.

The dollar was down nearly 2.3 yen in trading late Tuesday and early Wednesday, Reuters said. It also fell sharply against the major European currencies after the attacks, news services reported.

The stock exchanges in Mexico and Canada were closed Wednesday, but are expected to open for business Thursday morning.

Crude oil, which had jumped 13% in London shortly after the news, fell more than 1% on Wednesday, as traders' concern eased that oil supplies would be disrupted.