World Stocks Higher Tuesday

SINGAPORE (AP) -- Global stocks recovered on Tuesday as German leaders reached a surprise compromise on migration, putting to rest fears that the weeks-long dispute may topple Merkel's fourth government.

KEEPING SCORE: Germany's DAX rose 1.0 percent to 12,361.70 and France's CAC 40 added 0.8 percent to 5,318.70 in early trading. Britain's FTSE 100 gained 0.3 percent to 7,567.03. Wall Street was poised to open higher. Dow futures rose 0.3 percent to 24,363.00 and S&P 500 futures added 0.2 percent to 2,732.70. U.S. markets are scheduled to close early ahead of Wednesday's Independence Day holiday.

ASIA'S DAY: Asian markets tumbled in the morning as back-and-forth exchanges over looming U.S. tariffs added to worries over the trade war brewing between China and the U.S. Hong Kong's Hang Seng, reopening after a market holiday on Monday, closed 1.4 percent lower at 28,545.57 as investors reacted to weaker than expected Chinese economic data. The benchmark Nikkei 225 index lost 0.1 percent to 21,785.54 while South Korea's Kospi added 0.1 percent to 2,272.76. The Shanghai Composite index gained 0.4 percent to 2,786.89. Australia's S&P/ASX 200 rose 0.5 percent to 6,210.20 after the Reserve Bank of Australia kept its 1.5 percent benchmark interest rate unchanged.

GERMAN MIGRANT DEAL: On Monday, German chancellor Angela Merkel and her rebellious political allies reached a compromise on migration that both sides said addressed their concerns. After five hours of talks, they agreed to establish "transit centers" on Germany's border with Austria where asylum-seekers would be evaluated and, if it turned out they already had applied for protection in another EU country, sent back to that country. Individuals who are rejected by those countries will be directed back into Austria "upon agreement" with Vienna. Merkel called the deal a "very good compromise."

TRADE TENSIONS: The European Union on Monday slammed the Trump administration for considering higher tariffs on auto imports, saying they could lead to global retaliation against some $300 billion in U.S. goods. European Commission spokesman Margaritis Schinas said the U.S. investigation into the possibility of auto tariffs "lacks legitimacy, factual basis and violates international trade rules," like last month's U.S. tariffs on steel and aluminum imports. The EU has retaliated against those tariffs with measures of its own, which hit around 2.8 billion euros ($3.26 billion) worth of American-made products. President Donald Trump cited national security concerns for the previous tariffs. On Monday, Trump said the World Trade Organization has treated the U.S. "very badly" and the country will be "doing something" if the organization doesn't change its ways. But he denied reports he plans to pull out of the WTO.

TARIFFS LOOM: The U.S. will start imposing a 25 percent tariff on $34 billion worth of Chinese imports this Friday. It won't target 284 other items, worth $16 billion, until it gathers further public comments. China is expected to strike back with tariffs on a like amount of U.S. exports. The Trump administration is also identifying an additional $200 billion in Chinese goods for 10 percent tariffs, which could take effect if Beijing retaliates.

ANALYST'S TAKE: "The afternoon lift in Asia was reinforced by a positive move in European stocks, led by the German market as a compromise between Merkel and her interior minister on immigration eased fears of political turmoil," said Eli Lee, head of investment strategy at the Bank of Singapore.

ENERGY: Oil futures recovered from the previous day's downtick, after Trump claimed that Saudi Arabia could produce up to double of the 1 million barrels-a-day increase agreed by OPEC countries. Benchmark U.S. crude added 79 cents to $74.73 a barrel in electronic trading on the New York Mercantile Exchange. It fell 21 cents to settle at $73.94 a barrel on Monday. Brent crude, used to price international oils, gained 60 cents to $77.90. The contract lost $1.93 to close at $77.30 in London.

CURRENCIES: The dollar rose to 110.88 yen from 110.87 yen in late trading Monday. The euro rose to $1.1659 from $1.1639.

(BE)