On Friday European stocks and U.S. index futures climbed after a report said China’s central bank is planning to set up $300 billion of funds to invest overseas. Asian shares still retreated.

Barclays Plc led a rebound in banks after policy makers reached their latest agreement to tackle the debt crisis. Alcatel-Lucent SA increased 5.2 percent after analysts upgraded the company.

The Stoxx Europe 600 Index rallied 1.1 percent to 240.28 in London after earlier falling as much as 0.9 percent. MSCI Asia Pacific Index still retreated 2 percent after economic data in the region missed economist forecasts.

In Europe, stocks climbed after Reuters reported China is planning to create a new investment vehicle to improve returns on its foreign-exchange reserves. The news agency cited an unidentified person with knowledge of the matter. The vehicle would operate two funds, one targeting investment in the U.S. and the other focused on Europe, according to the Reuters report.

The benchmark Stoxx 600 earlier swung between gains and losses as investors digested the latest agreement to come out of the European Union Summit in Brussels.

“We still have good intentions but it’s going to take a while for everything to be put on to paper which means a long term with uncertainty in markets,” Carsten Brzeski, an economist at ING Group NV in Brussels, said in an interview on Bloomberg Television.

German Chancellor Angela Merkel said the leaders of the 17 euro nations reached an accord to tighten budget controls and channel 200 billion euros through the International Monetary Fund.

Japanese stocks fell, sending the Nikkei 225 Stock Average to its biggest drop in two weeks, after the European Central Bank damped speculation it would step up debt purchases. The Nikkei 225 fell 1.5 percent while the Topix Index lost 0.9 percent.