Europe steadies before Greece summit, China stocks fall again

A trader watches his screens at the stock market in Frankfurt, Germany.

LONDON – European stock and bond markets steadied before a eurozone leaders summit to discuss the Greek debt crisis while a further fall in Chinese shares reminded investors of other dark clouds on the horizon.

Oil recovered some ground after Monday\’s stomach-churning selloff prompted by Greeks\’ overwhelming rejection from the terms of a bailout deal and the Chinese stock markets turmoil.

Eurozone leaders meet in Brussels, awaiting proposals from Greek Pm Alexis Tsipras as his country\’s banks rapidly exhaust cash and the European Central Bank tightened the noose on funding. Failure to achieve a deal would boost the likelihood of Greece leaving the single currency.

The Euro STOXX 50 index of euro zone blue-chip shares rose 0.2 per cent after falling 2.2 percent on Monday. Germany\’s DAX index rose 0.3 percent while Italy\’s FTSE MIB was up 1.4 percent.

\”The rest of Europe is ring fenced from what\’s going on in Greece. We would see further volatility having a Grexit, but not as severe once we saw previously,\” said James Butterfill, global equity strategist at Coutts.