European shares edge higher in cautious trading

Credit: REUTERS/STAFF

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.

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Nov 19 (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)

((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 6328;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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