Fundamental Comment

European shares trail gains in Asia on sentiment improvement

European shares recover

European shares gained on Tuesday, trailing gains in Asia, clawing back Monday’s sharp losses on optimism after a temporary easing of U.S. trade restrictions on the Chinese telecom company Huawei.

Washington on Monday eased some of the trade restrictions that were imposed on Huawei technologies company, where the US commerce department granted Huawei a 90-day license to assist existing customers.

Enhanced ease of restrictions on Huawei helped to improve the general sentiment in the market and thereby boosting demand on risky assets.

The Euro STOXX 600 added 0.54 percent to 379.54.

German DAX 30 index surged 1.01 percent to 12,162.64, France CAC 40 augmented 0.5 percent to 5,389.89 and UK FTSE 100 soared 0.65 percent to 7,358.53.

Chinese stocks rise

In China, the Shanghai Composite Index rose 1.23% to close at 2905.97 and the CSI 300 high-chip index finished 1.35 percent up.

Financial companies rose by 0.88%, the consumer goods sector rose by 1.01%, and real estate companies ended by 0.88% and health care companies by 1.45%. as a part of  Shanghai Stock Exchange

The biggest winning companies in the Shanghai Composite Index were Henan Yuguang Gold & Lead Co Ltd, which rose 10.12%, followed by Zhongmin Energy Co Ltd, where 10.07%, and Ningbo Boway Alloy Material Co Ltd, gained 10.06%.

The price of yuan is 6.9115 per dollar, rose by 0.03% more than the previous closing which was set at 6.9133.

In the meantime, the US dollar index which measures a greenback of major 6 currencies rose about 0.19 percent at 97.94.

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