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European Shares Seen Up As EU Leaders Reach Deal On Migration

asian markets1 29jun18

European stocks are set to open higher on Friday after China eased restrictions on foreign investments in various sectors and the EU summit reached a deal on immigration.

China eased restrictions on foreign investment in sectors including banking, automotive, heavy industry and agriculture amid scrutiny from its top trading partners, the United States and the European Union.

They were complaining that Beijing limits foreign firms' ability to enter the world's second-largest economy.

Significantly, the move comes as the Trump administration mulls new restrictions on Chinese investments in American tech companies.

Speculation is also rife that the People's Bank of China will lower the reserve ratios for some banks next week.

Meanwhile, EU leaders have reached an agreement on migration in the early hours of Friday after more than 12 hours of negotiations.

Under the agreement, EU countries would set up joint asylum processing sites and restrict migrants' moves with the bloc. "All the measures in the context of these controlled centres, including relocation and resettlement, will be on a voluntary basis," the joint statement said.

Asian stocks reversed early losses to trade mostly higher and the dollar fell against the euro in reaction to weak U.S. data released overnight while gold rebounded from a more than six-month low hit in the previous session.

Oil prices eased on concerns about trade frictions between the United States and other major economies.

In economic releases, U.K. consumer sentiment weakened in June largely on weak economic outlook, survey data from market research group GfK showed earlier today. The consumer confidence index fell to -9 from -7 in May. The score was forecast to remain unchanged at -7.

Flash inflation numbers from euro area and unemployment and retail sales figures from Germany are due later in the session, headlining a busy day for the European economic news

Across the Atlantic, traders are likely to keep an eye on reports on personal income and spending, consumer sentiment, and Chicago-area business activity.

Overnight, U.S. stocks rose as banks and technology companies rebounded from recent string of losses. The Dow rose 0.4 percent, the S&P 500 gained 0.6 percent and the tech-heavy Nasdaq Composite added 0.8 percent.

Traders shrugged off a dismal GDP report, disappointing labor market data and Trump's remarks that the European Union was set up to take advantage of the United States.

European markets closed lower on Thursday as trade worries persisted and investors kept an eye on the two-day EU meeting in Brussels. The pan-European Stoxx Europe 600 index weakened 0.8 percent.

The German DAX plunged as much as 1.4 percent and France's CAC 40 index lost 1 percent while the U.K.'s FTSE 100 slid 0.1 percent.

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