European markets rallied at the open earlier after European Central Bank (ECB) President Mario Draghi hinted at further monetary policy easing. Draghi said on Monday that the ECB is "ready to do its part" to make "the euro area more resilient", hinting at further stimulus measures to come.
Markets were also helped by comments out of China. Investors shrugged off poor Chinese trade data that saw exports and imports plunge, after People's Bank of China (PBOC) governor Zhou Xiaochuan dismissed the ideas of capital controls and said he saw no basis for a continuing depreciation of the yuan.
But not all analysts are convinced that central banks have much more room for maneuver, especially since many of the underlying factors behind the recent volatility in stocks remain the same.
"The factors that have driven the sharp declines in the last few weeks haven't changed, and for all of Mr Draghi's soothing comments, markets are becoming much more skeptical of the ability of central banks to do anything other than extend and pretend, or think creatively, with their current policy merely being the equivalent of monetary policy double or quits," Michael Hewson, chief market analyst at CMC Markets, wrote in a note on Tuesday.