LONDON: Global equity markets went on another rollercoaster ride Wednesday as China's interest rate cut showed no sign of ending a crisis fueled by fears over stalling growth in the world's number-two economy.

Though US stocks began the session higher on new US data showing that orders for durable goods rose a solid two percent in July, activity in other global markets suggested the recent period of volatility was not over.

Frazzled investors sent Europe's top indexes swinging between losses and gains Wednesday after a choppy session on Asian bourses, and analysts predicted even more turbulence ahead.

China's central bank reduced interest rates and slashed the amount of money banks need to hold in reserve on Tuesday — its second such double move in two months — in a bid to stoke growth.

The measures are not only aimed at boosting cash flow in China, but also at reviving confidence that Beijing can steer the economy away from a hard landing and keep global growth on course.

China's slowdown has cast a dark shadow over markets because the Asian powerhouse represents around 15 percent of global economic activity according to analysts — and it is a top consumer of many commodities.

"A Chinese slowdown has huge implications for the global economy as they are a major trading partner importing goods and services from other countries," Mike McCudden, head of derivatives at online stockbroker Interactive Investor, told AFP.

"Furthermore, the impact on global markets hits pension funds — and therefore the back pocket of investors and retirees," he said.

The pain of that blow has been acute over the last week, with global equity markets losing $2.7 trillion in value in Monday's slide alone.

The Chinese rate cut initially fueled a rebound in Europe on Tuesday but optimism fizzled by the end of the US session, and on Wednesday Asian markets see-sawed in nervous trade with Europe following suit.

And despite the new US statistics sending Wall Street higher in early trading, analysts said concerns about China will likely undermine the outlook of global markets anew.

"All confidence has dissipated and the short-lived rally is wobbling. Unless the market regains some poise, a repeat of Monday's sharp moves cannot be ruled out," Moneycorp analysts said in a note to clients.

China's benchmark stock index fell 1.27 percent to 2,927.29 points, after veering wildly between losses and gains of around four percent during the day.