Car Makers' Shares Lifted by US-EU Trade Detente -- Market Talk
July 26 2018 - 5:01AM
Dow Jones News
European car makers' shares rise after U.S. President Trump and
European Commission President Jean-Claude Juncker agreed to hold
off on further tariffs and work to reduce trade barriers,
alleviating investors' worries. "We believe the key fact is no
immediate EU/US tariffs are a good thing with the market pricing in
50-60% probability of trade war in autos as of yesterday," says
Evercore ISI. An EU-U.S. statement said the zero-tariff initiative
involves "non-auto industrial goods." The exclusion of autos should
be viewed as a "bargaining chip to make sure an overall zero-tariff
trade is being worked on," Evercore says. Daimler trades 1.3%
higher, Audi and parent Volkswagen are up 2% and 2.8% respectively,
and Porsche and BMW gain 3.4% and 2.6% each. Renault is up 1.5%,
Peugeot rises 2.5% and Fiat gains 4.1%. (max.bernhard@dowjones.com;
@mxbernhard)
(END) Dow Jones Newswires
July 26, 2018 04:46 ET (08:46 GMT)
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