GLOBAL MARKETS-China rate cut gives stocks, oil, dollar relief; volatility high
(Updates with market commentary, European equities close)
* Market rebounds on cut in China rates, reserve requirements
* European shares close up 4.4 percent
* U.S. stocks trim gains, dollar rises, oil rebounds
By Sinead Carew
NEW YORK, Aug 25 (Reuters) - Markets rebounded on Tuesday with world stocks, oil prices and bond yields all rising after China cut interest rates and banks' reserve requirements in a bid to kick-start its wavering economic growth.
But while the S&P 500 rose as much as 2.9 percent during Tuesday's session, trading was volatile and its gains had receded to just a 1.3 percent in late afternoon trading.
The dollar turned around Tuesday to rise 1.2 percent against a basket of major currencies as the stimulus boost to China economy renewed focus on U.S. economic data and a potential Federal Reserve rate hike this year.
Global markets had been pummeled on Monday after Chinese shares fell almost 9 percent, prompting investor calls for remedial action from authorities that grew louder overnight after the Shanghai Composite Index slumped. Continued...