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" Rolling coverage of the latest economic and financial news, as China threatens to retaliate over America’s clampdown on Huawei Introduction: Washington rows back on Huawei ban Huawei granted new 90-day licence to operate in US Chinese stocks jump 1% 8.24am BST European stock markets are open, and posting some gains after yesterday’s selloff. In London the FTSE 100 is up 31 points, or over 0.4%, clawing back Monday’s losses. Up to now, the Chinese side is limited to harsh rhetoric. Nevertheless, the last turn of the trade wars provoked a market reaction in the form of key indices decline, which increased the demand for US government bonds and defensive yen and franc. 8.10am BST Traders in China have hailed Washington’s decision to allow US companies to keep doing business with Huawei for the next three months. Chinese stocks traded higher overnight as trade tensions cooled a little after the US commerce department granted Huawei a 90 day licence to assist existing customers, and this gave markets some much needed breathing space. 7.59am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. Tensions between the US and China remains the top issue worrying investors, as fears growth that the trade war will morph into a tech war too. “The temporary general licence grants operators time to make other arrangements and the [commerce] department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services.” Having hit Huawei with a ‘keep out’ order, the Trump administration has temporarily revoked large parts of it, having now realised how embedded Huawei already is. This is “to allow operations to continue for existing Huawei mobile phone users and rural broadband networks” It’s almost as if they hadn’t thought this through. “Chinese companies’ legitimate rights and interests are being undermined, so the Chinese government will not sit idly by.” European Opening Calls:#FTSE 7327 +0.22%#DAX 12088 +0.39%#CAC 5368 +0.17%#MIB 20637 +0.47%#IBEX 9225 +0.28% Continue reading...