Calm returns to global exchanges

The markets had fallen sharply on Monday

Calm has returned to global markets, with gains in US and European stock markets, which were mirrored earlier in the day in Asia.

Despite continuing concerns over the US economy, stocks rose after computer firm Apple reported a 67% rise in quarterly profits late on Monday.

Wall Street's main Dow Jones index ended up 109 points at 13,676, while the tech-heavy Nasdaq index also rose.

In London, the UK's FTSE 100 closed up 55 points at 6,514.

Caterpillar warning

Elsewhere in Europe, Frankfurt's Dax was 48 points higher at 7843 and Paris's Cac was up 44 points at 5705.

One of the concerns on Friday was the consumer was going to be hurt by housing and here's a real consumer-based product [Apple] hitting a home run Marc Pado, Cantor Fitzgerald

Tokyo's Nikkei index had earlier closed up 12 points at 16,451, with analysts saying Japanese shares were also benefiting from the yen falling against the dollar.

The Dow Jones index had fallen sharply on Friday, after US heavy machinery group Caterpillar said it expected the US economy would be "near to, or even in, recession" next year.

But on Monday, the Dow Jones finished up 45 points at 13,567 on optimism about Apple's results before they were released following the close of trading.

"We've got good leadership with Apple," said analyst Marc Pado, US market strategist for Cantor Fitzgerald.

"One of the concerns on Friday was the consumer was going to be hurt by housing and here's a real consumer-based product hitting a home run."