Global markets pulled out of their nosedive after oil prices rebounded on hopes of a cut in production.

Heavy falls overnight in Asia sparked declines across Europe, with China's benchmark Shanghai Composite dropping 6.4% to its lowest close since December 2014.

London's FTSE 100 Index opened deep in the red, falling by more than 1.6% in early session trading after the cost of crude fell back below 30 US dollars a barrel, but later lifted as oil prices rose to stand 34.5 points higher at 5911.5.

The rise in crude prices came after oil cartel Opec called for co-operation from non-Opec oil producing nations to work with it to tackle oversupply in order that prices rise.

Germany's Dax and France's Cac 40 were in the red earlier in the session, but both closed around 1% higher. In New York the Dow Jones Industrial Average jumped more than 200 points in early trading.

CMC markets analyst Jasper Lawler said: "While oil prices remain volatile, stock markets appear to have lost control of their own destiny."

The pound was a cent up against the US dollar at 1.43, and a cent up against the euro at 1.32.

Among stocks, low-cost airline easyJet was the biggest blue chip faller after it revealed the impact of recent terrorist attacks in Paris and Egypt as bookings dropped in the wake of the atrocities.

Overall revenues fell 0.1% to £930 million in the quarter.

Shares in easyJet fell 3%, or 52p, to 1579p.

Electrical retailer Dixons Carphone was also in sharp focus as it unveiled plans to roll out electrical superstores merging its three main brands across the UK and Ireland and updated on a "strong" festive sales performance.

The group is to shut 134 stores as it extends the so-called three-in-one store format across its estate, combining PC World, Currys and Carphone Warehouse under one roof.

It also edged its full-year profits outlook higher after seeing like-for-like sales rise 5% over the 10 weeks to January 9.

But shares failed to benefit amid the wider market falls, down 2%, or 10.6p, to 456.5p.

Oil stocks bounced back from early session falls of more than 3% as crude recovered by more than a dollar to 31.60 US dollars a barrel.

BP later stood 6.4p higher at 356.5p, while Royal Dutch Shell lifted 18.5p to 1420.5p.

Tesco also shrugged off a scathing report that revealed it had "intentionally delayed" paying suppliers.

The long-awaited findings of the probe by the Groceries Code Adjudicator (GCA) found Tesco had "seriously" breached an industry code by delaying payments to suppliers.

But no financial penalty was imposed and Tesco shares lifted 4.7p to 160.4p.

The biggest risers on the FTSE 100 Index were Anglo American up 26.8p at 253.4p, Glencore up 6.3p at 87.1p, Fresnillo up 36.5p at 694.5p and Rio Tinto up 79.5p at 1688.5p.

The biggest fallers on the FTSE 100 Index were easyJet down 52p at 1579p, Shire down 124p at 4123p, Mondi down 32p at 1160p and Dixons Carphone down 10.6p at 456.5p.