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* China stocks slump 6 pct before G-20 summit in Shanghai
* Volatile crude oil prices seesaw, remain above lows
* Stocks worldwide gain ground, Wall Street flat
By David Gaffen
NEW YORK, Feb 25 (Reuters) - Crude oil resumed its recent
decline, but equity markets were stronger on Thursday, with
Europe rebounding from losses on fears of Great Britain exiting
the European Union.
Wall Street was little changed after Wednesday's late-day
gains that marked a reversal from earlier losses. Chinese stocks
dropped 6 percent, feeding concerns about the strength of the
world's second-largest economy.
The Dow Jones industrial average .DJI rose 4.94 points, or
0.03 percent, to 16,489.93, the S&P 500 .SPX gained 0.17
points, or 0.01 percent, to 1,929.97 and the Nasdaq Composite
.IXIC dropped 6.07 points, or 0.13 percent, to 4,536.53.
The SSE (L:SSE) Composite Index fell 6.4 percent, the biggest day of
losses in a month. The slump in Shanghai, where markets have
lost more than half their value since June, underscored a sense
of caution over China ahead of Friday's G20 meeting there.
Pressure is on the G20 leaders to get the global economy
back on track and to calm markets after one of the rockiest
starts to a year on record.
The IMF called on Wednesday for those countries that still
have money available to help boost growth and
Chinese officials, speaking as G20 delegates started to arrive,
moved to ease fears about another sharp drop in the yuan.
"We do recognise the risk the global economy faces," China's
Deputy Finance Minister Zhu Guangyao said at a conference. "We
also understand how important it is to correctly communicate
with the market."
The U.S. Energy Department said Wednesday that crude
stockpiles grew to more than 507 million barrels, an all-time
high. U.S. crude CLc1 fell 3 percent to $31.14. Brent crude
LCOc1 dropped more 3 percent to $33.40.
"At the moment the markets just feel like a chicken with its
head cut off," said Saxo Bank's head of FX strategy, John Hardy.
"Everything is swinging around on the daily moves on oil.
There was a pretty remarkable comeback by Wall Street yesterday
despite some weak data so it feels like it's a bit dodgy till we
get past the G20 meeting."
Europe's FTSEurofirst 300 .FTEU3 , which had lost almost 4
percent since Tuesday, was up 1.8 percent as risk appetite
returned.
Britain's sterling was slightly higher at $1.3941 GBP=D4 ,
taking a breath from a 5 percent fall since early this month on
fears that a public vote on June 23 could see Britain become the
first country to quit the 28-member European Union.
Dealers said there were also signs of downward pressure
building on the euro ahead of next month's European Central Bank
meeting which is expected to see the bank cut rates again. Euro
zone long-term inflation expectations fell to record lows on
Thursday.
The dollar struggled to make much headway, however, due to
doubts over whether the Fed will raise rates at all this year.
The euro edged up 0.2 percent to $1.1030 EUR=EBS .
Gold XAU= , meanwhile erased early losses and rose about
0.8 percent to $1,239 an ounce, within sight of a one-year high
of $1,260.60 reached on Feb. 11. GOL/