Global stocks rebound on Huawei reprieve from U.S. restrictions

Stocks rebound on Tuesday after the U.S temporarily lifted the ban on China’s Huawei. Chipmakers and stocks with high exposure to Asia were ranked top of the gainers.

In Europe, the STOXX 600 rose by 0.3 percent, Germany’s DAX gained 0.6 percent and France’s CAC 40 rose 0.2 percent.

By the close of the trading, the Shanghai Composite index gained 1.23 percent and the blue-chip CSI300 index closed at 1.35 percent higher.

The upbeat mood follows a move by the U.S. that has seen Huawei get a reprieve from the ban and can now buy goods from the U.S. The explanation from Washington is that it has allowed the Chinese company to continue as before, so as not to disrupt existing networks.

The Chipmakers Infineon and STMicro rose by 3.5 percent to 1.4 while the technology sector increased by over 1 percent. On Monday it had lost by 3 percent. The autos and suppliers sector also gained, going up by 1.1 percent on the day.

The blue-chip index got so much support from heavyweights HSBC, Standard Chartered and Prudential.

In Asia, heavyweight Samsung Electronics gained boosting South Korean KOSPI stock index which closed the day by 0.3 percent gain.

The MSCI index remained stable gaining 0.01 percent. MSCI keeps on check shares in 47 different countries.

In Germany, Handelsblatt press reported that Daimler intended to reduce administration costs by almost 20 percent.

Telecom Italia was among the top gainers on the STOXX 600. It posted its quarter one results as expected and also as a confirmation of its guidance planned for the next 3 years.

Meanwhile, the British pound reached an all-time low since mid-January to below $1.27. This came as the dollar became stronger and hopes that Theresa May would not convince cabinet members to support the Brexit withdrawal bill.

The pound was at $1.2688, a fall of 0.2 percent. It dropped by 0.14 percent against the euro.

The prices of oil escalated amid heightened tension between the U.S. and Iran. It is expected that OPEC will try to limit oil supply, which will keep prices higher throughout this year.