* Global stocks hit two-year lows
* Glencore shares bounce in London after plunge in Hong Kong
* Biotechs fall in Europe but bounce in U.S.
* Platinum falls to lowest level since December 2008 (Updates with close of European markets)
By Chuck Mikolajczak
NEW YORK, Sept 29 (Reuters) - Global equity markets reached a two-year low on Tuesday as the outlook for raw materials prices and emerging markets remained bleak, while U.S. biotech shares attempted to stabilize after a recent selloff.
Commodity prices edged up but held near multi-year lows on concern over an economic slowdown in major raw material consumer China. U.S. stocks turned higher in a choppy session, as biotechs were volatile following a seven-session losing streak.
The S&P 500 dropped 2.6 percent in the prior session for its fifth straight loss, moving closer to August lows that analysts see as a key support level.
"It's typical of a market that is trying to find the bottom but it is hard because there is so much uncertainty," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
"Obviously the Fed created this uncertainty and until we get some meaningful guidance out of the Fed I'm afraid it is going to be like this."
Since the Federal Reserve held U.S. interest rates in check on Sept. 17, markets have been kept off balance on the timing of a rate hike.
Fed officials gave mixed messages on Monday and investors were looking to a speech from Fed Chair Janet Yellen on Wednesday for more clarity, with a key U.S. payrolls report also due on Friday. ID:nL1N11Y2L9
Mining and trading company Glencore GLEN.L , whose shares fell by almost a third on Monday on investor concern over its debt levels, bounced up 16.9 percent in London but only after its Hong Kong-listed shares 0805.HK fell 29 percent.
Copper CMCU3 steadied after hitting a one-month low. It last traded at $4,973.50 a tonne, up 0.2 percent on the day but within reach of a 6-1/2-year low below $4,855. ID:nL5N11Z20V
Platinum XPT= fell to a low of $894 an ounce, its lowest since December 2008, on fears that the emissions scandal surrounding German carmaker Volkswagen (XETRA:VOWG) could hit demand from the auto sector. It last stood at $912.74, down 0.4 percent. ID:nL3N11Z2P3
The pan-European FTSEurofirst 300 index .FTEU3 closed down 0.6 percent, recovering from a steeper fall led by biotech shares .SXDP .
U.S. biotechs .NBI reversed initial declines, however, to show a gain of 1.6 percent. The Nasdaq Biotech Index fell nearly 20 percent over the prior seven sessions on concerns over government intervention in drug pricing.
MSCI's all-country share index .MIWD00000PUS was down 0.5 percent after touching a two-year low.
The flash reading of annual euro zone inflation is due on Wednesday. A slip into negative inflation would fuel speculation about further European Central Bank stimulus, six months after the euro zone's central bank launched a massive asset purchase program.
The U.S. 10-year Treasury note US10YT=RR rose 10/32 in price to yield 2.0596 percent. ID:nL1N11Z10W
The Dow Jones industrial average .DJI rose 27.93 points, or 0.17 percent, to 16,029.82, the S&P 500 .SPX gained 5.73 points, or 0.3 percent, to 1,887.5 and the Nasdaq Composite .IXIC added 6.46 points, or 0.14 percent, to 4,550.43.
Brent crude oil LCOc1 , which lost 2.6 percent on Monday, rebounded by $1.16 a barrel to $48.50 while U.S. crude gained 2.6 percent to $45.60 on expectations that U.S. crude inventories dropped in the latest week. ID:nL3N11Z1D6