In initial deals, London's benchmark FTSE 100 index of major blue-chip companies gained 0.3 percent to 7,532.49 points compared with Monday's closing level.

In the eurozone, Frankfurt's DAX 30 added 0.7 percent to 12,355.66, while the Paris CAC 40 won 0.5 percent to 5,308.88 points.

World stocks had plummeted Monday on reports that US President Donald Trump was planning new curbs on Chinese investment in America.

Asian stocks banked sharply lower on Tuesday following steep falls on Wall Street, amid fear that Washington was readying a new phase in its economic confrontation with China.

Trump has threatened to strike back against China's retaliation to the US tariffs that are due to take effect July 6.

"Equities had a bearish day yesterday (Monday) as Trump's agenda of protectionist measures is threatening US and global growth," noted Konstantinos Anthis, research head at trading firm ADS Securities.

"Economists from around the world are expressing their concerns that a global trade war could send the US back to a recession and investors are taking a defensive approach as a response."