Global stocks initially reeled from the 8.93% decline in the S&P 500 on Monday with the Eurostoxx losing 31 points and the FTSE 100 down 92 points at the open, but both markets rebounded along with a surge in S&P futures sending the Eurostoxx higher by 0.87% and the FTSE 100 up 1.05% from opening levels.

S&P 500 futures continue to point to a higher open in the United States, up 1.74% on the day.

However, interest rate markets in Europe are relatively unchanged from opening levels with the British Bankers' Association reporting an overnight USD rate up 1 bp to 1.09% and the three-month libor down 1 bp at 2.21%.

The libor/OIS spread widened 2 bps to 182 bps and the Ted spread narrowed 1 bp to 217 bps.

The Fed funds rate, meanwhile, opened at 0.5625%, below the Fed's 1.00% target.

By Erik Kevin Franco, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Nancy Girgis, This email address is being protected from spam bots, you need Javascript enabled to view it

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