Markets steady as China credit fears ease However, those fears began to ease on Tuesday amid talk of possible market calming moves in China. China's central bank said later on Tuesday that it would guide market rates to reasonable levels, and it expected seasonal factors that caused a recent spike in interbank market rates would gradually fade. Appropriate liquidity management will help maintain reasonable growth in China's money and total social financing, and the People's Bank of China will manage liquidity in a flexible manner, the vice head of the central bank's Shanghai branch said. European bourses were on a firmer footing, with the FTSE 100 rising 0.6pc to 6066, Spain's IBEX ticking up 0.9pc to 7620 and Germany's Dax putting on 0.9pc to 7761. London traders were looking ahead to data due out of America on Tuesday afternoon, which may show that US durable goods orders and sales of new homes climbed in May. A recovery in equities comes after a turbulent streak of trading sessions, with investors selling off bonds and other assets after the Federal Reserve indicated last week that it could start scaling back stimulus measures. "European share markets are rebounding this Tuesday morning, shrugging off declines in overseas markets," said Ishaq Siddiqi of ETX Capital. The risk-tone has improved somewhat after Dallas Federal Reserve head Fisher attempted to downplay the markets' reaction to central bank tapering saying was overdone. He added that the market did not seem completely convinced by comments out of China on Tuesday morning. "Traders remain worried that the reluctance by Chinese authorities to intervene with additional liquidity injections will mean the cash squeeze in the system will persist for now, hampering growth in the country," he said.