European Stocks Advance as Auto Shares Rally on Tariffs Delay
European stocks rose, with automakers rallying on news that President Donald Trump was delaying some tariffs on Mexico and China. Focus is also on the European Central Bank meeting later in the day.
The Stoxx Europe 600 Index gained 0.4% by 8:17 a.m. in London, inching toward an all-time peak hit earlier this week. The autos subindex climbed as the White House said Trump was exempting automakers from newly imposed levies on Mexico and Canada for one month.
Stellantis NV, Volkswagen AG and Mercedes-Benz Group AG all advanced more than 2%. Among auto parts makers, Valeo SE jumped 5%, while Continental AG and Forvia SE also rose.
The Stoxx 600 has posted a stellar start to the year, and is on course to outperform the S&P 500 by over 10 percentage points in the first quarter — its best relative showing in a decade. Sentiment has been driven by bets on political stability and hopes of a ceasefire in Ukraine.
An improving economy and cheaper equity valuations have also attracted investors, although worries about a global trade war have somewhat clouded the outlook.
Source : Bloomberg
