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LONDON (AFP) – European stock markets held steady on Wednesday, while the euro edged back above 1.35 dollars, as authorities moved closer towards bailing out debt-riddled eurozone member Ireland.

In late morning deals, the European single currency climbed to 1.3513 dollars, having plunged the previous day to 1.3448 -- which was the lowest point since late September.

The London stock market fell by just 0.03 percent, while Frankfurt's DAX 30 gained 0.53 percent and in Paris the CAC 40 added 0.63 percent. Dublin lost 0.89 percent in value.

Shares had tumbled on Tuesday, hit by Ireland concerns and the prospect of slower growth in China, which is a key driver for global economic momentum.

Europe moved closer Wednesday to bailing out a eurozone state for the second time this year, as it launched a joint mission with the IMF to step up talks to support Ireland's devastated banks, six months after the rescue of Greece.

"European Union and European Central Bank officials seem to advocate an early rescue to limit contagion to other periphery countries," said Citigroup economist Michael Saunders.

"However, the Irish government appears reluctant to accept conditions that would accompany a rescue, including perhaps a much higher corporation tax rate.

"But financial market strains may have now become so acute that these hurdles will have to be overcome. We expect that a rescue package will be agreed ... in the next few days or, at most, weeks."

Eurozone finance ministers announced late Tuesday that they would act in a "determined and coordinated" way to protect the euro and the stability of the single currency area -- but the news underwhelmed many investors.

"Last night's European Union finance ministers' meeting amounted to very little," said Kathleen Brooks at trading website Forex.com.

"Ireland remains unwilling to accept a bailout of the state, but it has admitted that it needs help to prop up its banking sector that is the main cause of its budgetary woes.

"There is a chance that an announcement on financial assistance for Ireland is announced sometime before the end of this week," she said, stressing that this would be labelled as banking-sector aid, rather than a sovereign bailout.

Experts from the European Commission, the ECB and the International Monetary Fund were expected to arrive in Dublin on Thursday to step up talks on a bank aid programme.

Brooks argued that the eurozone needed a mechanism to help debt-stricken peripheral member nations like Portugal, Ireland, Greece and Spain.

"There is a growing sense that a bespoke solution to Ireland's crisis is only kicking the can of peripheral financial worms further down the street," she said.

"Until there is a convincing automatic default mechanism for all eurozone members then we could see other debt flare ups over the medium-term.

"Portugal is most at risk, and although Spain's financial position is also onerous, its relative economic strength compared with Portugal, Ireland and Greece should make it less likely to receive an assault on its bond markets."

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