Forex Marketz Daily Forex News – Fully Markets Update
European markets are set to open higher this morning as they track gains seen in the Asian trade session. European traders, while still concerned over the trade war between China and the United States, might view recent trade related news with optimism.
Futures are showing that the European benchmark in London, the FTSE 100, ready to open 14 points higher at 7,325. The German DAX is set to open 47 points higher at 12,087. The CAC 40, in France, is ready to open eight points higher at 5,365.
Global markets were shaken on Monday thanks to a U.S. crackdown on Chinese telecommunications company Huawei. This brought the global technology sector lower. Major European chip makers fell sharply after news that Germany’s Infineon will not send any more technology shipments to Huawei until further notice.
However, recent news that the U.S. government is temporarily easing some trade restrictions on Huawei. They are doing this to minimize disruption for Huawei customers around the world. This boosting sentiment and helping risk assets like equities rebound a bit.
European Traders Worry about the ongoing Trade War between China and the US
Overnight, the parent company of Google, Alphabet, suspended business with Huawei. This will include transferring hardware, software and other technical services to the embattled Chinese technology giant.
This decision follows the U.S. administration decision that added Huawei to a list that required U.S. companies that will now need a license to do business with the Chinese telecommunications giant. Other companies like Intel, Qualcomm and Broadcom will also no longer supply Huawei with technology.
