(Bloomberg) -- European stocks rose, as semiconductor shares got a boost from the prospect of softer-than-expected US curbs on chip equipment sales to China.
The Stoxx Europe 600 Index traded 0.5% higher at the close in London, having earlier risen as much as 0.8%. Semiconductor-linked stocks such as ASML Holding NV, VAT Group AG and Aixtron SE all rose. US futures also traded higher, though the cash market was shut for the Thanksgiving holiday.
Bloomberg News reported that an additional crackdown on sales of semiconductor equipment and AI memory chips to China would stop short of stricter measures previously considered.
US curbs on equipment sales to China are “less restrictive than previous reports had suggested, providing a temporary relief to semi equipment suppliers in Europe,” said Wolf von Rotberg, equity strategist at Bank J. Safra Sarasin.
Stocks bounced back from two days of declines triggered by fears that Donald Trump’s tariff threats, if he carries them out, will sap Europe’s growth given its dependence on China’s manufacturing exports. On Wednesday, Blackrock’s Wei Li warned risk assets could get a “wake up call” should broad based tariffs be considered.
“Markets have today returned to the conclusion that the forthcoming administration could prove more realistic than dogmatic,” said Florian Ielpo, head of macro research at Lombard Odier Investment Managers. “The sentiment appears to have shifted.”
Traders continue to watch the path of interest rate cuts in Europe, as Spanish inflation quickened to the fastest pace since August. Meanwhile German price growth unexpectedly remained unchanged in November, backing arguments for the European Central Bank to continue lowering interest rates.
Among single stocks, Remy Cointreau SA fell after the firm forecast a larger-than-expected fall in annual sales and said the US market will not recover until at least the end of the year. Shares in Direct Line Insurance Group Plc rose 45% after it rejected a takeover bid from Aviva Plc.
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