New York, June 30: European stock markets rebounded on Friday after the EU struck a deal on migration, while Wall Street eked out modest gains behind an advance in petroleum-linked shares.

Key eurozone markets in Frankfurt and Paris were up by around one percent, with London posting much more modest gains.

“European markets are rising nicely in the wake of a migration deal in the European Union,” Charles Schwab analysts said.

The euro firmed on the deal, and was further underpinned by eurozone inflation rising to 2.0 percent, increasing expectations of an end to the European Central Bank's stimulus program in December.

EU leaders clinched a hard-won migration deal during all-night talks that Italy's hardline new premier said meant his country was “no longer alone” in shouldering the responsibility for migrants.

They also offered a concession to German Chancellor Angela Merkel, who faces a rebellion from within her own coalition government, with moves to stop migrants registered in Italy and other EU countries from moving to Germany.

Still, EU President Donald Tusk warned that difficult work lay ahead to make the agreement work in practice.

Wall Street stocks rose for a second day in a row, with petroleum-linked shares advancing as US oil prices closed at a fresh three-and-a-half year high.

Still US equity markets ended well below their session peaks, with several large banks, including Bank of America and JPMorgan Chase, finishing in negative territory after surging in the morning.

Analysts have cited worries about lower US Treasury yields, in addition to ongoing trade anxiety.

– Flash in the pan? –

“The week is ending in a very different frame to which it began, with solid gains for equities in the UK, Europe and across the Atlantic,” said Chris Beauchamp, chief market analyst at IG.

He wondered, however, whether this might be “just a flash in the pan, based on a misreading of the current ongoing trade war situation.”

Canada on Friday unveiled hefty tariffs on $12.6 billion in US goods in retaliation for American tariffs on Canadian aluminum and steel.

Asian stock markets mostly closed higher at the end to a tumultuous quarter for global equities, with China-US trade tensions showing no sign of calming.

Trading floors have witnessed heavy selling in the past three months, as the two biggest economies exchanged threats of tariffs on tens of billions of dollars of imports, fueling fears for global growth.

An increasing source of concern for many investors is China, where the main stock market is in bear territory after losing more than 20 percent from a recent peak and the yuan continues to struggle.

Many analysts warn any trade war with the United States would likely hurt Beijing more, with growth in the Asian giant already showing signs of slowing this quarter and authorities looking to provide support.

– Key figures around 2100 GMT –

New York – Dow: UP 0.2 percent at 24,271.41 (close)

New York – S&P 500: UP 0.1 percent at 2,718.37 (close)

New York – Nasdaq: UP 0.1 percent at 7,510.30 (close)

London – FTSE 100: UP 0.3 percent at 7,636.93 points

Frankfurt – DAX 30: UP 1.1 percent at 12,306.00 (close)

Paris – CAC 40: UP 0.9 percent at 5,323.53 (close)

EURO STOXX 50: UP 0.9 percent at 3,395.60 (close)

Tokyo – Nikkei 225: UP 0.2 percent at 22,304.51 (close)

Hong Kong – Hang Seng: UP 1.6 percent at 28,955.11 (close)

Shanghai – Composite: UP 2.2 percent at 2,847.42 (close)

Euro/dollar: UP at $1.1689 from $1.1569 at 2100 GMT Thursday

Pound/dollar: UP at $1.3213 from $1.3078

Dollar/yen: UP at 110.61 yen from 110.49 yen

Oil – Brent Crude: UP $1.59 at $79.44 per barrel

Oil – West Texas Intermediate: UP 70 cents at $74.15 per barrel

(AFP/APP)