Stockholm  - The main stock exchanges in Europe's Nordic region recovered some ground in late morning trading Tuesday.

Although the Stockholm bourse dropped almost 3 per cent just after opening, continuing Monday's slide, it settled and was almost flat in late morning trading.

The Stockholm index closed at a low of 5.4 per cent on Monday, before the US House of Representatives voted against a 700-billion- dollar rescue plan.

Shares in the four main Swedish banking groups regained territory Tuesday, including Swedbank, which had been hammered Monday.

The benchmark indexes in Copenhagen and Helsinki were also up Tuesday after Monday's losses.

In Oslo, the bourse Tuesday was up 1.4 per cent in late morning trading after the bruising on Monday which saw a slump of over 8 per cent with energy shares among the main casualties. (dpa)