Experts are predicting that a rally on Wall Street on Friday, which saw the Dow Jones Industrial Average recover more than 100 points from the day's lows, should help see a bounce back across Europe.
However, analysts warned any upswing could be short lived with volatility in equity markets set to continue as concern over a global credit crunch intensifies.
David Jones, chief market analyst at CMC Markets, said: "We saw quite a bit of a recovery on Wall Street on Friday and this should help European markets today.
"But it would be naive to think the worst is behind us. It wouldn't be surprising to see the market test the 6,000 barrier next week."
The FTSE 100 Index lost 3.7 per cent on Friday - its biggest percentage fall in four years - shedding around £60bn from the value of London's leading companies.
The benchmark index has now dropped around 10 per cent since its peak in June amid fears about about banks' exposure to losses in the collapsing US sub-prime mortgage market.
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