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Frankfurt (Reuters) – In the hope of a relaxation of the tariff dispute between the United States and the European Union, the stock markets of Europe increased significantly on Thursday.
Investors are betting that automakers in Europe are fighting for higher import tariffs in the United States , which triggers a recovery of car stocks. The Dax closed up 1.2% to 12,464.29 points. The EuroStoxx50 gained 0.9 percent on the 3441.11 counter.
The US ambbadador to Germany, Richard Grenell, at a meeting with the leaders of the VW, BMW and Daimler automobile companies brought a complete waiver on the duties of the car in the conversation. "The stock markets are excited by the prospect of a total free trade of vehicles and auto parts between the United States and the European Union," said market badyst Jochen Stanzl of CMC Markets broker. The papers of BMW, VW and Daimler rose about four percent and were among the biggest winners of Dax. In Paris, Peugeot and Renault each increased by about three percent. The European index of the automotive industry climbed 3.4%.
Still on Wall Street, the US initiative makes a good mood. Shares of Ford and General Motot each rose about one percent. At the close of trading in Europe, the Dow Jones index was up 0.5%.
However, investors have also had their eyes on China, where Friday's Trump announced tariffs on Chinese products valued at $ 34 billion will come into effect. Beijing officials have threatened to lift higher duties on US products the same day. As a result, Chinese stock markets have fallen further. Investors also made nervous the devaluation of one week of the Chinese yuan. The World Trade Organization (WTO) has warned that trade barriers are threatening the global economy.
COMMERZBANK MUST CALL DAX ACCESSION
Inventories of supply companies also benefited from the recovery of car stocks. For example, Osram shares listed on MDax gained 7.9%. Leoni, Schaeffler and Hella each gained three per cent.
The papers of the two gas producers Linde and Praxair were also requested. The American company Praxair has sold its European activities to the Japanese Taiyo Nippon Sanso and is thus getting closer to the merger with its German rival Linde. Linde shares rose 4.5% in Frankfurt, while Praxair gained 3.3% on Wall Street.
Deposits stole the shares of AB Foods, they lost in London 4.2 percent. The food company, which also includes the low-priced brand Primark, said it could expect a drop in sales because of low sugar prices.
Under surveillance was the Commerzbank, whose days in the Dax could be counted after three decades. At present, the house of money has the lowest market value among the members of Dax. If this does not change in the next two months, the founding member would fly off the main index and, according to LBBW expert Uwe Streich, could be replaced by the Wirecard payment processor. Nevertheless, Commerzbank shares closed up by 2.2% to 8.55 euros. At the beginning of the year, they had cost a little less than 14 euros. Wirecard gained 4.5 percent.
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