By Jonathan Davies

Shares in Europe ditched the problems seen on Black Monday as China continued to see huge falls overnight.

In London, the FTSE 100 opened 1.5% higher and was up 3.3% by late morning. Slightly strong rises were seen in Germany with the Dax index, and Paris on the Cac 40.

Markets were further boosted by a decision by the Chinese government to cut interest rates to 0.25%.

Stock markets in Lisbon, Madrid and Milan were all up by around 3% at mid-morning, as well. Moscow saw shares rise 2%.

China, however, was not able to recover from Black Monday's record falls. The Shanghai Composite closed 7.6% lower after an 8.5% drop on Monday. Japan's Nikkei index was down 4% at close.