The Shanghai composite market reversed losses of more than 3 percent in early trading yesterday to close 5.8 percent up – the market’s biggest single session gain since 2009.

The principal reason for the rebound seems to have been the decision by the Chinese securities regulator, after trading had started, to ease margin or debt repayment requirements for share purchases by certain investors.

Share prices were also supported by the fact that close to 50 percent of companies listed on the market are now not trading – the stock of a further 200 companies ceased to trade yesterday

The view of most commentators is that the authorities may have intervened sufficiently to bring some stability back to the market.

Fidelity and Goldman Sachs actually advised clients overnight that there is value on the market again for overseas investors.

Meanwhile the bounce back in Chinese stocks was a principal factor in a 2.5 percent recovery in the oil price. Brent Crude is currently trading at $58.50 a barrel.

European stock markets are expected to make solid gains today on the news from China and the prospect of a possible weekend breakthrough in Greece