LONDON, Aug 21: Major global stock markets doggedly pursued recoveries on Tuesday, with most US and European indices adding to Asian gains despite warnings of more volatility owing to chronic fears of a credit crunch.

“The uncertainty, as far as the credit crisis is concerned, is not yet over,” said Hargreaves Lansdown analyst Keith Bowman in London.

In London, the FTSE 100 index of leading shares eked out a gain of 0.12 per cent to close at 6,086.10 points.

Frankfurt’s DAX 30 added 0.23 per cent to 7,424.75 and in Paris the CAC 40 gained 0.36 per cent to finish the day at 5,418.78 points.

Tokyo, Hong Kong and most other Asian markets had rallied earlier for a second straight day.

In New York, investors also appeared to believe the US Federal Reserve would pull out all the stops to ensure financial markets were amply supplied and that banks could keep credit available. The Dow Jones Industrial Average had gained 0.26pc to 13,154.92 points as European markets closed and the Nasdaq Composite of high-tech shares was up by 0.54pc at 2,522.18 points.

Standard and Poor’s broad 500 index showed a gain of 0.45pc to 1,452.00 points.

The Federal Reserve injected on Tuesday another $3.75 billion into the distressed US financial system, bringing the total to $101.25 billion added to money markets since August 9.

Central banks around the world have made a series of major cash infusions to ease tightening credit amid a crisis in the US subprime, or high-risk, mortgage sector.

At the Royal Bank of Scotland, economist Ross Walker added: “The stock markets, and conditions in the credit markets, will make it more difficult and more expensive for companies to raise finance -- but we don’t really yet know how much more difficult.”

On Tuesday, many Asian markets clawed back more of their hefty recent losses, with the region’s largest market in Tokyo closing up 1.07pc at 15,901.34 points. But several Asian bourses lost ground as investors remained on high alert for fresh signs of trouble.

Chinese share prices nonetheless rose 1.03pc to close at another record high as the market continued to focus on strong corporate earnings following a huge rise the previous day, dealers said.

Hong Kong ended 0.6pc higher, with the Hang Seng index reaching 21,729.35 points.—AFP