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Washington's Huawei reprieve triggers relief rally in bruised EU chip stocks


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LONDON, May 21 (Reuters) - Shares in European semiconductorcompanies, one of the most sensitive sectors to the global tradetensions, recovered from their worst day in 4-1/2 months onTuesday after the White House backtracked overnight on toughlimits on China'sHuawei.

AMS AMS.S , STMicroelectronicsSTM.PA and Germany'sInfineon IFXGn.DE shot higher - between 2-5.6% - in earlydeals after Washington temporarily eased trade limits on China'sHuawei Technologies HWT.UL , in a move aimed at minimisingdisruption for its customers. urn:newsml:reuters.com:*:nL2N22W19U

The technology index .SX8P was up 1% at 0741 GMT,recovering some of the 2.8% lost on Monday as investors shunnedthe sector amid worries that Huawei suppliers would losebusiness or have to sever ties with the world's No. 2 smartphonecompany due to tough U.S. restrictions imposed last week.

The easing trade tensions also brought some relief to carmakers and suppliers. The European index .SXAP rose as much as1.1% in early deals and was up 0.3% at 0734 GMT. (Reporting by Josephine Mason and Helen Reid) ((Josephine.Mason@thomsonreuters.com; +44 207 542 7695; ReutersMessaging: josephine.mason.reuters.com@reuters.net))






This article appears in: Stocks , World Markets , Economy
Referenced Symbols: AMS ,



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