Global stock indexes recovered some of their recent losses yesterday, drawing support from reports of brokerage measures in China to invigorate the country’s battered markets, while US oil extended losses from the day before.

The S&P 500 was up 0.7 per cent in early trading, also boosted also by upbeat data on US productivity.

European equities also were higher, building on early relief after Chinese stocks managed to bounce from steep losses before closing slightly lower.

Nine Chinese brokerages pledged to buy more than 30 billion yuan of shares, according to the China Securities Journal. That eased investor fears that Beijing may be intensifying a trading crackdown. The news stabilized global markets and soothed concerns that slowing growth in China will hurt the global economy.

The Dow Jones industrial average rose 99.41 points, or 0.62 per cent, to 16,157.76, the S&P 500 gained 8.22 points, or 0.43 per cent, to 1,922.07 and the Nasdaq Composite added 30.16 points, or 0.65 per cent, to 4,666.26. European stocks were up 0.2 per cent.

US data showed nonfarm productivity increased at its strongest pace in 1-1/2 years in the second quarter, keeping wage inflation subdued for now.

Oil prices retreated. Data from the American Petroleum Institute on Tuesday showed US crude stocks surged last week.

The move followed a big drop in Brent and US crude prices on Tuesday, which ended a 25 per cent three-session surge, the largest such gain since 1990. Brent crude for October was down 78 cents at $48.80 a barrel. US crude for October was down $1.34 at $44.07.

The dollar rose as global stock markets steadied, and as US hiring data encouraged speculation that Federal Reserve policymakers will raise interest rates later this month.

The dollar index, a measure of six major currencies valued against the greenback, was last up 0.40 per cent and had added to gains when payrolls processor ADP reported that US private payrolls increased by 190,000 last month.