European stock indexes have opened higher, with risk appetite showing some recovery after Monday's sharp falls, but analysts say fears over lower growth are still weighing on markets.
Asian equities slipped to their lowest in nearly two years overnight, before trimming losses.
A tumble in stock markets so far this month is attributed to a combination of monetary tightening by major central banks and a slowdown in economic growth.
Last week central banks in the United States, Britain and Australia raised interest rates and investors girded for more tightening as policymakers fought soaring inflation.
Although these drivers persisted on Tuesday, markets saw a slight recovery, which US stock futures suggested would continue through to Wall Street's open.
At 0752 GMT, the MSCI world equity index, which tracks shares in 50 countries, was trading flat, having touched its lowest since late 2020 earlier in the session.
Europe's STOXX 600 was up 0.8 per cent, but the gain was small relative to its 6.6 per cent loss so far in May.
S&P 500 futures were up around 0.8 per cent while Nasdaq futures rose 1.3 per cent.
Peter McCallum, interest rates strategist at Mizuho, said the bounceback was a natural correction after the previous session's falls. Traders could also be positioning themselves to take advantage of any boost to sentiment coming from Wednesday's key US consumer price index (CPI) data, he said.
"If headline inflation comes in and shows that month-on-month CPI is heading in the right direction then that makes the case for potentially a more dovish Fed and hikes being priced out," McCallum said.
The dollar index was little changed, having reached a 20-year high on Monday. Meanwhile, the Australian dollar fell to its lowest in nearly two years, hurt by fears of slowing economic growth.
China's export growth slowed to its weakest in almost two years, data showed, as the central bank pledged to step up support for the slowing economy.
Oil prices edged higher, recovering after steep declines on Monday, which were due to a combination of the stronger dollar, growing recession fears, and COVID-19 lockdowns in China.
Given concerns that Russia could cut off gas flows to Europe, German officials are preparing an emergency package that could include taking control of critical firms.
European Union members could reach a deal this week on the EU Commission's proposal to ban all oil imports from Russia, France's European affairs minister said.
European government bond yields were slightly higher, with the German 10-year yield up 1 basis point at 1.1 per cent.
The US 10-year yield was at 3.0499 per cent, having eased since it hit 3.203 per cent on Monday - a level not seen since 2018.
Gold also went some way to recover Monday's decline, up around 0.4 per cent.
Elsewhere, Bitcoin was up 5.5 per cent, recovering some of its 11.6 per cent Monday plunge, its biggest daily fall since May 2021. At around $31,736, the cryptocurrency has lost more than half its value since it hit an all-time high of $69,000 in November.