Global markets are still reacting to fears of further economic struggles in the United States and the Eurozone countries.

European markets followed Asian shares downwards on Tuesday as panicked investors continue to dump stocks and push gold to another day of record highs.

But exchanges in Europe recovered heavy losses made in the volatile trading in the morning, while stock markets in the Middle East and Asia have been the most hit so far.

US stocks rose at the opening on Tuesday in a rebound from the previous session's nosedive, but an upcoming statement from the US Federal Reserve could spark a reversal if investors are not convinced it has a plan to combat a market meltdown.

There was widespread hope before the Fed's statement, due at 2:15pm [1915 GMT]. Investors hope the US central bank could take some type of action to stem a financial market meltdown linked to fears of a new US recession.

The Dow Jones industrial average gained 1.65 per cent to 11,022.80. The Standard & Poor's 500 Index rose 12.53 points, or 1.12 per cent, to 1,131.99. The Nasdaq Composite Index climbed 36.31 points, or 1.54 per cent, to 2,394.00.