Europe open: Markets rise amid mixed Sino-US trade messages

European stocks were higher on Tuesday morning, as good news for Huawei appeared to overshadow reports of Chinese trade war gloom.

At 0857 GMT, the Stoxx 600 was 0.4% higher at 407.58, as Germany's Dax rose by 0.5% to 13,272.39 and the French CAC 40 climbed by 0.2% to 5,941.59. Meanwhile, London's FTSE 100 was up by 0.6% at 7,348.23.

The Trump administration has granted blacklisted Chinese tech-giant Huawei a 90-day extension to do business with US companies, boosting optimism over the state of Sino-US relations.

Rabobank analysts said: "Investors are taking the relief provided by the President’s Huawei olive branch as positive in terms of equities while the ongoing trade spat remains more than justification for a continued bid for safe haven government bonds, notably treasuries and bunds."

However, a report from CNBC indicated that Beijing is pessimistic about the outcome of trade discussions, as US President Trump has refused to roll back tariffs on Chinese goods in order to clear the runway for a phase one deal.

Oanda analyst Craig Erlam said Trump's refusal to engage with Chinese wishes could simply be posturing, though time is running out if the two parties want any sort of agreement to be signed this year.

"Talks have collapsed before though and could again, the key difference this time though being that Trump will not want to go into an election without a deal," said Erlam.

Among individual stocks, carmakers such as Volkswagen, Daimler, BMW and Peugeot were in the green after data showed October's European passenger car registrations were the strongest for a decade.

Zurich-based private bank Julius Baer climbed as it posted 10% rise in managed assets over the first 10 months of the year, but warned it was unlikely to meet net new money targets.

German commercial real estate company TLG Immobilien was higher after saying it has agreed to be bought by Aroundtown in a $3.4bn deal.

Sonova dropped even as the Swiss hearing aid manufacturer raised annual sales and earnings guidance following a strong first-half performance.