Financial spreadbetters expect Britain's FTSE 100 .FTSE to open down 0.5 percent, Germany's DAX .GDAXI 0.7 percent, and France's CAC 40 .FCHI 0.6 percent.
"There
is still too much uncertainty in the markets and investors would be
watching developments in Greece and China very carefully before jumping
in," said Karine Hirn, Hong Kong-based partner of Swedish group East
Capital, a $3.5 billion fund management firm.
"Chinese
authorities wouldn't want to trigger a meltdown which would spook
investors and we may see more market stabilising measures on the way,"
she said.
Volatility in China's stock market in recent days has rippled through Asia, weighing on stock markets from Mumbai to Australia, and prompting investors to rush to the sidelines.
Chinese stocks .SSEC rallied more than 5 percent on Tuesday afternoon after falling nearly 5 percent in early trade, as the government and regulators stepped up efforts to prevent a plunge of 20 percent in the last few weeks from inflicting further damage on the already slowing economy.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 1.5 percent but remained near a five-month low hit on Monday. Japan's stock index .N225 rose 0.6 percent while Korea .KS11 gained 0.7 percent.
Over the weekend, China cut interest rates and lowered reserve requirements to stabilise markets - a rare combination not seen since the depths of the 2008 financial crisis. In fresh steps, authorities are also preparing to allow pension funds to invest in the stock market for the first time.
Notwithstanding the flurry of measures taken by Beijing, high-yielding currencies such as the Australian dollar AUD=D3 remained out of favour as investors sought refuge from the heightened market volatility in safe-haven assets.
A risk gauge, the CBOE Volatility index .VIX, spiked overnight to its highest levels not seen since February.
"Yesterday, we saw dip buying in the euro by a lot of players. Today we don't see any," said Masatoshi Omata, senior client manager of market trading at Resona Bank.
Volatility in China's stock market in recent days has rippled through Asia, weighing on stock markets from Mumbai to Australia, and prompting investors to rush to the sidelines.
Chinese stocks .SSEC rallied more than 5 percent on Tuesday afternoon after falling nearly 5 percent in early trade, as the government and regulators stepped up efforts to prevent a plunge of 20 percent in the last few weeks from inflicting further damage on the already slowing economy.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 1.5 percent but remained near a five-month low hit on Monday. Japan's stock index .N225 rose 0.6 percent while Korea .KS11 gained 0.7 percent.
Over the weekend, China cut interest rates and lowered reserve requirements to stabilise markets - a rare combination not seen since the depths of the 2008 financial crisis. In fresh steps, authorities are also preparing to allow pension funds to invest in the stock market for the first time.
Notwithstanding the flurry of measures taken by Beijing, high-yielding currencies such as the Australian dollar AUD=D3 remained out of favour as investors sought refuge from the heightened market volatility in safe-haven assets.
A risk gauge, the CBOE Volatility index .VIX, spiked overnight to its highest levels not seen since February.
"Yesterday, we saw dip buying in the euro by a lot of players. Today we don't see any," said Masatoshi Omata, senior client manager of market trading at Resona Bank.
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