FRANKFURT (dpa-AFX) - After the recent sell-off in the DAX, there are signs of stabilization on Tuesday. The broker IG valued the leading German index a good two hours before the Xetra start 0.78 percent higher at 17,475 points.

Very weak global stock markets in the face of recession worries in the USA had not spared the Dax on Monday, but the round mark of 17,000 points had held. The index has now managed to recapture the 200-day line, which is a key indicator of the longer-term trend and currently stands at 17,412 points.

In Japan, the Nikkei-225 leading index, which had fallen by more than twelve percent the previous day, was on course for a recovery on Tuesday. It gained nine percent around an hour before the end of trading there. There are also signs of improvement in the USA after a very weak start to the week on Tuesday.

The experts at Capital Economics still consider a soft landing for the US economy to be the most likely scenario, despite the recent weak data from the labor market. In the event of further market turbulence, the US Federal Reserve could be prompted to loosen monetary policy more quickly than expected, they added./ajx/zb