U.S. stock-index futures have sharply pared early losses as China calls for dialogue with the U.S.
Nasdaq-100 futures jumped 0.6%, S&P 500 futures and Dow futures gained 0.2%.
The bounce has coincided with China releasing a white paper on China-U.S. economic and trade relations in which Beijing states the two countries can resolve their differences through dialogue and cooperation.
The news has also helped European bourses open better than hoped, with the U.K.'s FTSE 100 down 2.3% and Germany's DAX off 2.4%. The falls reflect the fact that Wall Street was higher at the Europe close on Tuesday, but finished in the red.
Many analysts remain wary about how European stocks will fare from here as the trade tension continues after U.S. President Trump slapped a broad 20% tariff on the eurozone.
"The DAX is still showing no signs of a bottom formation or a clear trend towards one," said Jochen Stanzl, chief market analyst at CMC Markets
"The risk remains that new lows below 18,800 points could occur in the coming days. The central support level is at the 19,300 mark; if this is breached, a plunge down to 17,550 points could ensue, which is the next significant support zone in the market," he added.