European shares opened slightly higher today as investors tentatively returned to the market after a brutal two-week sell off, but the threat of further possible militant attacks kept a lid on gains.
By 8.13 a.m, the FTSE Eurotop 300 index of pan-European blue chips was 0.5 per cent higher at 963.4 points, while the narrower DJ Euro Stoxx 50 index rose 0.4 per cent to 2,723.7 points.
European benchmarks closed at their lowest levels of the year yesterday, with the DJ Stoxx 50 having fallen more than 8 per cent in just two weeks.
"Markets are reacting to any fresh news and rumours about more terrorist activity and that is adding uncertainty to an already shaky market," said Chris Hawkes at spread betting firm IG Index.
Today Palestinian militant group Hamas promised to strike back at Israel in retaliation for the killing of their spiritual leader, while an Islamist Internet site published a statement purporting to come from an al-Qaeda-linked group, also vowing revenge on the United States and its allies.
Among Europe's big movers, airline Swiss was weaker, down 2.3 per cent after saying it had enough liquidity to keep flying but stay quiet on any progress in its search for a new top executive.
British furniture group MFI fell 4.3 per cent after saying a longer-than-usual sale period had failed to boost sales at it's core retail chain. Consumer products giant Unilever also fell, down 0.7 per cent after Merrill Lynch downgraded the company to "neutral" from "buy".
In New York yesterday, the Dow Jones industrial average closed 1.2 per cent lower at 10,064.8 points, and the tech-laden Nasdaq Composite ended down 1.6 per cent at 1,909.9 points.