Equities and currencies in central and east Europe recovered from Tuesday’s selling fury, with stock markets trading up and currencies rising against the euro as global markets continued their violent swings. Still, the region is weathering the eurozone storm better than west European countries with HSBC going as far as to say emerging Europe may be on more “solid footing” than Western markets.

In a note today, HSBC’s Murat Ulgen told investors that European investors’  loss of appetite for risk due to financial meltdown had had less impact on CEE  “thanks to Emerging Europe’s healthier fundamentals and fiscal balances.” He warned, however, that this might bring only “limited respite” should economic woes in developed Europe become more pronounced.

The eurozone concerns are unlikely to abate and markets may be headed for more volatility after chairman of the Federal Reserve, Ben Bernanke, today raised concerns about eurozone bank funding.