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The President of the European Commission, Jean-Claude Juncker, and US President Donald Trump surprisingly agreed at their meeting to start negotiations to remove the obstacles to trade. "New tariffs, especially for cars, and a full trade war between America and the EU, although initially, appear to be discarded," said Thomas Metzger, head of management badets at Bankhaus Bauer. "However, Donald Trump has often proven in the past how quickly his opinion could change."
Newspapers of automakers exploded in Frankfurt. Shares of BMW, Volkswagen and Daimler gained through relaxation signals up to 5.2 percent. For the latter, the agreement even surpbaded the fall in profits. Suppliers such as Continental and Hella were also in demand and grew by 2.6%.
Overall, the German DAX benchmark rose from 1.4% to 1.4%. The Euro Stoxx gained 0.68% and the Paris Bourse gained 0.65%.
The two parties also surprisingly agreed to talk about the abolition of tariffs on industrial products. In this context, industrial stocks were sought at the Vienna Stock Exchange. Voestalpine dominated the ATX with a more than 3.41%. Behind them, AT & S and FACC rank among the first places
"Still far from eye level"
Economists were cautiously optimistic in their initial reactions. The outcome of the summit gives hope that the world's two largest economies will enter into constructive negotiations to reduce trade barriers instead of threatening each other with tariffs and counter-tariffs, said Gabriel Felbermayr of the Ifo Institute. Since threatening tariffs initially seem to be avoided, economic concerns weaken slightly. The economy Peter Bofinger found the result very satisfying. It goes exactly in the direction we have also imagined, said Bofinger. That one is not trying now to tarnish himself with tariffs, but to catch the ox by the horns and say, "Okay, Trump, if you have a problem with the tariffs, then we will just stop them. 19659003] The reasons why Donald Trump was relatively docile towards the EU can only be speculated, said Thomas Gitzel, chief economist of VP Bank Liechtenstein. Are punitive European tariffs already effective against a range of US products, asks Gitzel. We do not know. Maybe the transatlantic ones would not have completely lost their influence. The fact is that yesterday a door was opened. Europeans have more customs and higher tariffs than the United States. In any case, Donald Trump's allegations are not totally unjustified. It is therefore also up to the EU to seize the opportunity and remove the barriers to trade.
The German economy, which has welcomed the draft settlement of the trade dispute, still sees many unanswered questions. "The promised solutions are going in the right direction, but there is still a lot of skepticism," said DIHK President Eric Schweitzer. "We are still out of eye level negotiations."
(APA / Reuters)
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