Global stock markets recovered following sharp losses in earlier trading on Friday and the euro picked up against the dollar as Europe struggled to stem its debt crisis. US stocks ended sharply higher a day after posting their biggest drops in more than a year. The Dow Jones industrial average rose 125 points after falling below 10,000 in morning trading. The Dow rose 125.38, or 1.3 percent, to 10,193.39. The broader Standard & Poor's 500 index rose 16.10, or 1.5 percent, to 1,087.69. The Nasdaq composite index rose 25.03, or 1.1 percent, to 2,229.04. The Dow had last fallen below 10,000 on May 6 when it lost nearly 1,000 points in an afternoon rout that was the biggest ever intraday slide. The Dow tumbled 376 points Thursday. The Dow and the S&P 500 index fell more than 3 percent, while the Nasdaq lost 4.1 percent. The drop erased the gains major indexes had made in 2010. London's benchmark FTSE 100 index closed down 0.20 percent after falling by more than 2.0 percent in afternoon trading, while the Frankfurt Dax fell by 0.66 percent and the Paris CAC 40 dipped by 0.05 percent. The euro meanwhile rose to $1.2574 compared to $1.2482 on Thursday and gained against the Japanese yen, rising to 113.38 from 111.88.
