Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Ericsson’s share price has surged 5% premarket despite China considering retaliating against them and Nokia if Europe follows the UK and US in banning Huawei from its 5G networks according to a report from the Wall Street Journal.
The UK announced last week that its telecom operators are not allowed to order 5G components from Huawei from the end of this year. They also said that they would need to remove all of the existing Huawei components from 5G networks by 2027.
After the news last week, Ericsson’s share price surged as they are now seen as one of the primary beneficiaries of the move away from Huawei.
China’s Ministry of Commerce is now looking into export controls that would mean it is harder for products made in China by Nokia and Ericsson to be sent abroad according to the report by the Wall Street Journal.
The EU has not yet recommended banning Huawei, but the US has been putting the pressure on.
Despite the potential retaliation from China, Ericsson’s US-listed shares have surged and are up 5.33%, currently trading at $11.47.
Friday also saw a rapid increase in its share price, where it gained 13.2% after the news of the UK’s actions on Huawei. The company’s share price is up 29.5% for the year-to-date.
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