Europe shares rise with satisfaction towards Huawei

Economy and stock exchange

European shares rose Tuesday after the United States temporarily eased restrictions on China's Huawei, reducing trade tensions and pushing technology and auto stocks soaring in the banking sector..

By 0745 GMT, the Stoxx 600 European index rose 0.4 percent, with the German DAX index hit by a trade-off performance after the US Commerce Department said it would allow Huawei Technologies to buy US products.

There was great relief in the markets following Huawei's news, pushing European chip makers higher. The shares of those companies fell after reports that it may suspend shipments to China Telecom giant. The technology sector gained more than 1 percent after losing almost 3 percent on Monday.

Car maker shares rose 0.4 percent, with Daimler adding a further boost to the sector after German newspaper Handelsblatt said the company was looking to cut management costs by 20 percent and the banking sector index rose 0.7 percent. The sector index closed at its lowest level in more than three months in the previous session.

Norsk Hydro rose 5.4 percent after Brazil gave the green light to the company to reopen the Alumina plant and recorded defense stocks including real estate, utilities and telecoms performance without the market.

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