European auto stocks rise after US-Japan trade deal

Shares of several European automakers rose in early trading on Wednesday, tracking a sharp rise in shares of some of their Asian rivals after Tokyo struck a trade agreement with the United States, fueling optimism about a similar deal with Europe.

Shares of Japanese and South Korean automakers rose overnight after news that the agreement would reduce US tariffs on Japanese car imports to 15% from a proposed 25%.

Citi analysts said it was noteworthy that the tariffs for a major auto-exporting country were reduced without a cap on shipments, which could have implications for negotiations with the European Union and South Korea.

Shares of Porsche, BMW, Mercedes-Benz, and Volkswagen rose between 1.9% and 3.75% in early trading in Frankfurt. Stellantis and Renault rose between 1.3% and 1.9% on Tradegate.