Comments from the ECB President, Mario Dragi, which indicated that the bank would review its programme of quantitative easing as early as its next policy meeting in March, and that there were no limits to how they would act to boost inflation across the Eurozone, have provided some respite for global markets after sharp falls in recent weeks.

Most European markets responded immediately to the remarks and closed the day on average 2% higher; the main stock market indices in New York closed between 0.5% and 1% higher in New York last night and the Tokyo and Hong Kong exchanges also recovered.

The euro has lost ground against both the dollar and sterling last night and the price of oil has been pushed slightly higher and close to the $30 per barrel mark.

It remains to be seen whether markets will gain some traction at these levels.

There have been short rebounds before over the past couple of weeks - but these were followed by sharp falls.

One of the main drivers of global market weakness is the price of oil and the President of the giant Saudi Oil Company, Aramco said yesterday that his country would continue to maintain current production until other major non-Opec producers such as Russia agree to cut back as well.