Il Nuovo Postiglione - European stock markets rebound, oil extends losses

London's benchmark FTSE 100 index rose 0.9 percent overall in late morning deals, though HSBC bank shares slid 3.6 percent on news of falling first-quarter profits.

In midday eurozone deals, Frankfurt won 1.2 percent and Paris gained 1.0 percent.

Global investor sentiment also won a shot in the arm from Elon Musk's vast $44-billion (41-billion-euro) agreed purchase of Twitter.

The European single currency hit a two-year low against the dollar, which was boosted by its haven status amid Ukraine turmoil.

World oil prices nudged lower to extend recent losses on stubborn fears over weaker Chinese demand.

- 'Relief rally' -

"European markets are enjoying a modest relief rally... after Monday's sharp sell-off, lifted by some positive momentum into the US close last night," said Victoria Scholar, investment head at Interactive Investor.

Asian indices diverged as investors scrambled to recover from Monday's global rout, but fears lingered over China's Covid lockdowns and the US Federal Reserve's rate-hiking plan.

The Omicron flare-up across China has led authorities to impose strict containment measures in its biggest cities, shutting off millions of people and threatening to deal a hammer blow to the world's number two economy.

Hong Kong stocks edged up but made only a small dent in the massive losses suffered the day before, while Shanghai extended the previous day's losses of more than five percent.

Sentiment was soothed somewhat after the People's Bank of China vowed to boost growth and consumption.

China's Covid measures have dealt a severe blow to its economy, leading to concerns about knock-on effects for the rest of the world -- given its reliance on Chinese-made goods.

The China crisis comes as traders grapple with a hawkish Fed, which is struggling to control inflation that sits at a more than 40-year high.

US central bank policymakers have said they are keen to lift rates several times this year to get a grip on prices, with boss Jerome Powell indicating a half-point rise next month followed by more before January.

Added to the picture, the Ukraine war has sparked additional markets turmoil owing to the impact on commodity prices and inflation.

Tesla tycoon Musk injected a note of optimism after Twitter agreed Monday to his vast takeover bid that was pitched at $54.20 per share.

- Key figures at 1030 GMT -

London - FTSE 100: UP 0.9 percent at 7,443.68 points

Paris - CAC 40: UP 1.0 percent at 6,515.34

Frankfurt - DAX: UP 1.2 percent at 14,087.80

EURO STOXX 50: UP 1.0 percent at 3,796.04

Tokyo - Nikkei 225: UP 0.4 percent at 26,700.11 (close)

Hong Kong - Hang Seng Index: UP 0.3 percent at 19,934.71 (close)

Shanghai - Composite: DOWN 1.4 percent at 2,886.43 (close)

New York - Dow: UP 0.7 percent at 34,049.46 (close)

Brent North Sea crude: DOWN 0.2 percent at $102.17 per barrel

West Texas Intermediate: DOWN 0.4 percent at $98.17 per barrel

Euro/dollar: DOWN at $1.0681 from $1.0713 late on Monday

Pound/dollar: DOWN at $1.2713 from $1.2741

Euro/pound: DOWN at 84.04 pence from 84.08 pence

Dollar/yen: DOWN at 127.76 yen from 128.14 yen

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C.Albano--INP