European and Asian stock markets steadied on Tuesday following Wall Street's sharpest daily drop in more than three decades, with analysts forecasting more volatility as governments and central banks scramble to try and calm the panic.
The dollar bounced back from heavy losses against the euro on Monday, while oil prices also recovered.
European stock markets surged around five percent in early deals Tuesday before either limiting or erasing all the gains.
"As has been the case every time the European markets have tried to rebound, it is not going to be smooth sailing," noted Connor Campbell, analyst at Spreadex trading group.
Wall Street indices collapsed Monday in their worst day since 1987, with the S&P 500 and Nasdaq dropping about 12 percent and the Dow sinking nearly 13 percent. US futures rallied Tuesday.
In a move meant to help tame the massive volatility in the markets caused by the coronavirus outbreak, the French bourse regulator on Tuesday banned short-selling in 92 stocks for the day.
"Taking into account the significant losses in recent days on the financial markets, the Financial Markets Authority (AMF) has decided to take an urgent step," it said in a statement.
The ban order covers mostly bank and financial stocks.
Investors use short-selling to bet the market will fall, putting tremendous downward pressure on prices at a time when buying interest is virtually non-existent.
While governments and central banks attempt to soothe markets with massive stimulus pledges and interest rate cuts, more countries are going into lockdown to prevent the outbreak's spread — bringing the world economy juddering to a halt.
There is a broad consensus that the disease, which has wiped trillions off market valuations, will cause a global recession, with the airline industry among the first in the firing line, leading company heads to plead for billions of dollars in state help to prevent them going under.
The Italian government Tuesday said it intends to re-nationalise the bankrupt former national carrier Alitalia under an emergency economic rescue.