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European Markets Likely To Open On Positive Note

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The mood in the European market is likely to be positive Tuesday morning after the U.S. government decided to temporarily ease some trade restrictions on Huawei.

The U.S. government's decision on Huawei is likely to trigger some buying in the technology space, which got a hammering on Monday.

Following the decision, the U.S. Commerce Department will now allow the Chinese technology major to purchase US goods in order to maintain existing networks and provide software updates to existing Huawei handsets.

However, Huawei will not be allowed to buy American parts and components to manufacture new products without license approvals.

Ren Zhengfei, the founder and chief executive of Huawei Technologies Co. reportedly told China Central Television that the U.S. government is underestimating the Chinese tech giant, and that within a few years no one will be able to catch up with its 5G technology.

Zhengfei said the move by the Trump administration to temporarily ease export restrictions against Huawei was meaningless, as the company has already made preparations for such an eventuality, including stockpiling chips. He also said Huawei could make its own chips, though that doesn't mean it intends to stop buying U.S. chips.

Geopolitical tensions between the U.S. and Iran may weigh on sentiment.

The U.S. Federal Reserve is scheduled to release the minutes of its latest monetary policy meeting this week. The minutes is likely to provide clues about the central bank's interest rate outlook for the rest of the year.

Bank of England Governor Mark Carney is set to speak at the parliament at 4:30 AM ET.

The economic outlook from The Organisation for Economic Co-operation and Development (OECD), survey data on UK Industrial Trends from the Confederation of British Industry and data on Eurozone flash consumer confidence for May are also due for release during the course of the day.

In commodities, West Texas Intermediate Crude oil futures for June are gaining $0.28 or 0.44% at $63.49 an ounce.

Brent crude oil futures for June are up $0.24 or 0.33% at $72.21 a barrel.

Gold futures for June are down $1.65 or 0.13% at $1,275.65.

In the currency market, the euro and sterling are both trading weak against the U.S. dollar.

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