Europe's options for overcoming the debt crisis narrowed asGermany doused expectations of a breakthrough at this weekend'ssummit and central bankers balked at extended bond purchases.

European stocks fell for a second day after German ChancellorAngela Merkel's office knocked down what it called “dreams” thatthe Oct. 23 summit will be the last word in taming the crisis.Christian Noyer, head of France's central bank, ruled out a rampingup of the European Central Bank's bond-buying program as part of amulti-pronged strategy to shield countries like Italy.

While Group of 20 finance ministers and central bankers pressedEuropean Union leaders to set out a strategy by the end of theweek, divisions flared over an emerging plan to avoid a Greekdefault, bolster banks and curb contagion.