Global markets steadied overnight following the wild volatility of recent sessions, brought on by fears about slowing economic growth.

The main US indices were more-or-less flat after some key economic data came in ahead of expectations.

Weekly jobless claims slid to a 14-year low, industrial production increased the most last month since November 2012, and the Philly Fed Index signalled manufacturers were still expanding at a solid pace.

All told, the data helped ease concerns about the US economy, sparking a rally in the small-to-mid cap space of the market.

Although most European equities recorded losses, the benchmark indices finished well off their earlier lows as traders judged their sell-off to have been overdone.

In commodity markets, oil's rebound was fuelled by the positive US economic updates, which overshadowed inventory data that revealed a larger-than-expected surge in US crude supplies last week.

Among the key metals, gold snapped a three session winning streak, as the modest recovery on US equity markets diminished its safe haven appeal.

Elsewhere, iron ore slumped two percent amid tepid economic growth prospects and a worsening global supply glut.

The greenback staged a modest recovery versus the yen and Aussie, but trading was cautious ahead of a speech by Fed chair, Janet Yellen, tonight, which may yield clues on future US interest rate policy.

The post Morning market update: Positive data steadies markets appeared first on Market Pulse.