LONDON (TheDeal) -- European markets paused for breath on Tuesday, as they waited on the outcome of an emergency E.U. summit that could decide if Greece remains in the eurozone. The meeting in Brussels will be attended by all 19 of the eurozone's heads of state and is due to begin after the markets close on Tuesday.
All eyes will be on Greek Prime Minister Alexis Tsipras, who will make his pitch to open a new and necessarily rapid round of negotiations to reduce Greece's debt. He comes armed with Greek voters' resounding rejection of an austerity-led bailout and hindered by an acute cash shortage that will force Greek banks to remain closed until at least Thursday. The leaders of France and Germany on Monday night insisted their aim was to find a way for Greece to remain on the euro but warned that time was running out and that Greece needed to present "serious and credible proposals."
Greece will have a new finance minister at the negotiating table after it appointed Euclid Tsakalotos to replace the controversial Yanis Varoufakis, who resigned on Monday.
Greek stock markets remained closed on Tuesday and will be closed on Wednesday. Frankfurt's DAX was marginally higher, up 0.12% to 10,903.64. In Paris, the CAC 40 was up a paper-thin 0.01% to 4,711.84. London's FTSE 100 was down 0.2% to 6,522.51.
In the U.S., traders will be waiting to see May's Balance of Trade figures, as well as the May Job Openings and Labor Turnover Surveys, known as JOLTS.
Rolls-Royce Holdings (RYCEY) led the London market lower for a second day after JPMorgan Chase cut its rating a day after the engine maker issued a profit warning. Heading in the opposite direction was ARM Holdings (ARMH), which climbed 3% following an upgrade by Morgan Stanley, which is bullish about the prospects for sales of smartphones that use ARM chips.
In Paris, oil services company Technip (TKPPY) fell 7.85% after announcing it will take a charge of €650 million ($713 million) and cut 6,000 jobs, citing falling spending by its oil company clients.
There was some good news out of Frankfurt, where shares in media groups ProSiebenSat1 (PBSFY) and Axel Springer rose 2.8% and 5.9% respectively after they recommenced stalled merger talks.
The other big story of Tuesday was in China, where the Shanghai Composite Index fell 1.29% as the Chinese market extended a three-week losing run that has wiped out more than a quarter of the index's value.
The falls triggered extraordinary measures from both regulators and individual companies. The China Financial Futures Exchange said Tuesday it will limit short-selling of smaller company stocks, while more than a quarter of China's mainland-listed firms have now temporarily suspended trading in their shares.
China's losses might have been worse if not for gains made by Bank of China (BACHY), China Construction Bank, PetroChina (PTR - Get Report) and other blue-chip Chinese stocks, which rose 10%, the maximum daily gain allowed by Chinese regulators. The surge came amid reports that Chinese brokers have set aside 128 billion yuan ($20.6 billion) to buy blue-chip exchange-traded funds. The SSE 50 Index, which tracks China's 50 biggest companies, finished Tuesday up 2.3%.
Japan's Nikkei 225 index rose 1.3% to 20,376.59, bouncing back after recent falls and pushed higher by energy companies, which were boosted by an overnight falls in crude-oil futures. Tokyo Electric Power (TKECF) led the gains for a host of energy companies, climbing 6.87%.