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European Shares Seen Lower As Trade Tensions Persist

asian markets2 25jun18

European stocks look set to open lower on Monday as worries about U.S.-China trade tensions persisted and oil prices gave up some of their Friday's gains on expectations of increased supplies from next month.

Asian stock markets fell broadly on trade worries after the Wall Street Journal reported that U.S. President Donald Trump plans to bar many Chinese companies from investing in U.S. technology firms and block additional technology exports to China.

Chinese regulators freed up about $100 billion for bank lending, helping limit regional losses to some extent.

Brent crude futures fell over 2 percent below the $74 a barrel mark in Asian trade after rising more than 3 percent on Friday as OPEC pledged to increase production by less than the market feared.

U.S. West Texas Intermediate (WTI) crude futures are down about half a percent after rising as much as 5 percent on Friday.

The dollar hit a two-week low versus the yen while gold climbed on dollar weakness. On the data front, Ifo business climate data from Germany is due later in the session.

U.S. stocks finished mostly higher on Friday, led by energy stocks. The Dow rose half a percent to snap its longest losing streak in over forty years and the S&P 500 inched up 0.2 percent while the Nasdaq Composite dropped 0.3 percent amid a sell-off in technology shares.

European markets rose on Friday as rallying oil prices, a debt-relief plan for Greece and improved regional growth data helped investors shrug off Trump's tariff threat targeting imported autos from the European Union.

The pan-European Stoxx Europe 600 index rallied 1.1 percent. The German DAX rose half a percent, France's CAC 40 index climbed 1.3 percent and the U.K.'s FTSE 100 rallied 1.7 percent.

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