MORNING BID EUROPE-A Brexit rebellion put down

* A look at the day ahead from European Economics and Politics Editor Mark John and EMEA markets editor Mike Dolan. The views expressed are their own.

LONDON, June 21 (Reuters) - So British PM Theresa May lives to see another day after enough party rebels backed down on their demands for more parliamentary control of Brexit. So fraught were proceedings that standard arrangements allowing poorly lawmakers to cast their vote without being physically present were suspended: one wheelchair-bound MP ended up voting in her pyjamas and carrying a sick bag. While yesterday's outcome is undoubtedly a reprieve for May, more battles are yet to come in weeks ahead as the government finally starts to define its future relationship with the European Union. Today it will outline its plans for new immigration rules for EU citizens living in the UK after Brexit and will urge the EU to clarify how British nationals living abroad will be treated.

The rest of Europe is more preoccupied with other matters right now. Leaders of Eastern European countries plus Austria meet in Budapest today to set their line ahead of a mini-summit this weekend on immigration, with signs the bloc is heading towards an increasingly tougher line on policing its external borders and keeping new migrants out. Meanwhile, it is a big day for Greece as finance ministers of euro zone countries meet in Luxembourg to decide possible new debt-relief measures for Athens, plus the size of the cash send-off it will get when it ends its third (and hopefully final) bailout on August 20.

Romania's top court will rule in the trial of Social Democrat leader Liviu Dragnea on charges of abuse of office, a case that could weaken the country's most powerful politician and open cracks in the ruling party if he is convicted. More widely, many Romanians are seeing this case as a test of whether the judiciary has the mettle to fight the country's widespread graft in the country. Dragnea himself denies all wrongdoing.

None of the economists polled by Reuters expect the Bank of England to raise rates when it announces its June policy decision at 1100 GMT. Instead, interest is focused on any hints it might drop on whether rates will rise its next meeting, in August, or only later in 2018.

MARKETS AT 0655 GMT After all the fire and brimstone over trade earlier in the week, global markets seem to have settled into something of a mid-year lull. Some of that is a result of tariff-related sector rotation, with the tech-heavy Nasdaq (Frankfurt: 813516 - news) and leading internet stocks powering ahead overnight on Wall Street even as the bellwether Dow Jones industrials index ended in the red. The idea that technology is a secular bet on the future that will be relatively insulated from the cycle or even trade wars saw the famed FANG stocks – Facebook (NasdaqGS: FB - news) , Amazon, Netlix and Google-parent Alphabet (Swiss: GOOGL-USD.SW - news) – all hit record highs again. The late-cycle mergers and acquisitions spree also helped support equities, with Disney upping the ante to more than $70 billion in its bidding war with Comcast (Swiss: CMCSA.SW - news) over 21st Century Fox’s movie and cable assets.

American and European stock futures were higher first thing, even though European auto stocks were likely to be hit after Daimler’s tariff-related profit warning. Chinese, Hong Kong and South Korean stocks slipped back about 1 percent each, however, as trade war fears hung heavy over the region and the war of words over tariffs continued, with Beijing calling recent U.S. moves "capricious" as it detailed retaliation. China’s offshore yuan exchange rate fell another 0.5 percent and emerging-market equities more broadly relapsed toward this week’s 2018 lows. China’s onshore yuan weakened past 6.5 to the dollar for the first time since mid-January as the cabinet pledged it would use cuts in bank reserve requirement ratios to boost credit to SMEs. Part of that move and the latest swoon in emerging markets was due to signals from Federal Reserve chief Powell on Wednesday that the Fed will stay the course in its gradual interest rate campaign, words which lifted U.S. Treasury yields and the dollar.

Sterling fell to its lowest level of the year against the dollar before the Bank of England’s latest policy decision on Thursday, with market expectations for another UK interest rate rise this year ebbing yet again. While UK PM May’s win in getting her Brexit bill through parliament gave the pound a brief boost on Wednesday, many see the defeat of pro-EU rebels as increasing the chances of a no-deal Brexit at the margins. Brent crude oil was lower ahead of tomorrow’s OPEC meeting, but well above early week lows. Stock markets across the Gulf fared slightly better after MSCI (Frankfurt: 3HM.F - news) added – as expected – Saudi Arabia and Argentina to its emerging markets indexes, while adding Kuwait to its watchlist for reclassification to emerging from frontier-market status. * Europe corp events: Dixons Carphone (Frankfurt: CWB.F - news) ; Chemring Group HY. Wirecard AGM

* Swiss May trade

* France June business climate index

* Swiss National Bank (LSE: 0QKG.L - news) policy decision and Financial Stability Report

* Norges Bank policy decision

* Spain auctions 2023, 2025, 2033 and 2044 government bonds

* EZ June consumer confidence

* UK May public sector borrowing

* ECB supervisor Nouy speaks in Amsterdam

* Turkey June consumer confidence

* South Africa Q1 current account

* Bank of England policy decision and meeting minutes. BoE (Shenzhen: 000725.SZ - news) chief Carney delivers Mansion House speech later in the evening

* Euro group finance ministers meet in Luxembourg, to discuss debt relief for Greece, euro zone reforms

* US June Philadelphia Fed index, weekly jobless claims, April house prices

* Mexico central bank policy decision

* Argentina May trade (Editing by Larry King)