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European shares edge higher in cautious trading

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By Reuters
European shares edge higher in cautious trading
FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, November 14, 2019. REUTERS/Staff   -   Copyright  STAFF(Reuters)

(Reuters) – European shares edged higher on Tuesday after signs of reprieve for China’s Huawei from further U.S. sanctions, although trading was range bound as investors waited to see if the United States and China could reach a preliminary trade deal.

The pan-European STOXX 600 <.STOXX> rose 0.4% by 0820 GMT, with London-listed shares <.FTSE> leading gains after multiple positive corporate updates.

The Trump administration on Monday issued a new 90-day extension allowing U.S. companies to continue doing business with China’s Huawei Technologies Co Ltd [HWT.UL].

However, uncertainty over the trade deal held back investors from making big bets after the CNBC reported overnight that the mood in Beijing was pessimistic about prospects of sealing an agreement.

In corporate M&A, shares in Germany’s TLG Immobilien <TLGG.DE> rose 2.6% after announcing an all-stock merger with fellow real estate firm Aroundtown SA <AT1.DE>.

Automakers <.SXAP> rebounded from their worst session in six weeks as data showed passenger car registrations in Europe rose to their highest since 2009 in October, driven by robust demand in Germany and France, and a rebound in demand for Volkswagen <VOWG_p.DE>.

Volkswagen shares rose 0.9%.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)