Seoul Gazette - Stocks rise as auto shares surge on tariff break hopes

NYSE - LSE

AZN	0.8%	67.59	$
SCS	0.51%	9.76	$
NGG	0.87%	72.11	$
GSK	1.56%	35.93	$
RELX	1.92%	52.2	$
BTI	1.27%	42.37	$
RBGPF	100%	63.59	$
CMSC	0.18%	21.82	$
RIO	1.74%	58.17	$
BCE	1.91%	22.04	$
VOD	1.5%	9.31	$
CMSD	0.18%	21.96	$
BCC	0.83%	93.47	$
JRI	1.29%	12.4	$
BP	2.33%	28.32	$
RYCEF	-1.5%	9.36	$

Stocks rise as auto shares surge on tariff break hopes

POLITICS 15.04.2025

Stocks rise as auto shares surge on tariff break hopes / Photo: © AFP/File

Stock markets rose Tuesday, with shares in several automakers gaining after US President Donald Trump hinted that the sector could get some tariff reprieve.

Text size:

Some stability has returned to markets after last week's rollercoaster ride over Trump's stop-start tariff announcements, but uncertainty remains over speculation of new levies on high-end technology and pharmaceuticals.

"While financial markets have steadied, with many looking as if they are consolidating at current levels, this feels as if it is the calm before the storm," said David Morrison, senior analyst at financial services firm Trade Nation.

"Markets remain skittish, and investors feel safer sitting on their hands for now, hoping that last week's worrying dislocations revert back to normal," he said.

Wall Street opened slightly higher while the dollar, which has been battered in recent days, pared back some losses against the euro.

European indices performed better than US peers in afternoon deals.

Paris made more modest gains, weighed by shares in luxury conglomerate LVMH falling more than eight percent after it reported a decline in sales.

Shares in European and Asian automakers rallied following Trump's comments on Monday that he was "very flexible" and "looking at something to help some of the car companies" hit by his 25 percent tariff on all imports.

"This serves to double down on the weekend narrative that Trump will reverse some of his tariffs once company execs approach him to highlight the huge negative implications of his action," said Joshua Mahony, chief market analyst at Scope Markets.

"It therefore comes as no surprise to see the likes of Aston Martin Lagonda, BMW and Volkswagen heading up the gainers," he added.

US-European automaker Stellantis, whose brands include Jeep, Fiat and Peugeot, gained over six percent in Paris, while German brands Volkswagen and Mercedes-Benz advanced more than two percent.

"We are encouraged by what President Trump indicated yesterday about tariffs for the car industry," Stellantis president John Elkann said at the group's annual shareholders meeting.

In Asia, Toyota jumped 3.7 percent and Hyundai more than four percent.

But in the United States, General Motors and Ford slumped.

Markets made a positive start to the week, rising Monday after the announcement of tariff exemptions for consumer electronic products, though Trump's suggestion that the reprieve would be temporary tempered the optimism.

"Sentiment got a further boost thanks to positive noises about trade negotiations, which added to the sense that the administration is focused on making deals that could see the tariffs come down," said Jim Reid, analyst at Deutsche Bank.

Treasury Secretary Scott Bessent said Monday that a China-US deal could be done, in an apparent olive branch as the two economic powerhouses trade tariff threats.

Trump has hammered China with duties of up to 145 percent, while Beijing has imposed retaliatory measures of 125 percent.

Other countries are negotiating with Washington.

Trump aide Kevin Hassett said the White House had received "more than 10 deals where there's very, very good, amazing offers made to us", but did not specify from which countries they came.

Asian markets pushed higher, with Tokyo, Hong Kong, Seoul and Shanghai all rallying.

South Korea's announcement of plans to invest an additional $4.9 billion in the country's semiconductor sector gave a little lift to chip giants Samsung and SK hynix.

- Key figures around 1335 GMT -

New York - Dow: UP 0.1 percent at 40,575.75 points

New York - S&P 500: UP 0.2 percent at 5,417.84

New York - Nasdaq: UP 0.2 percent at 16,863.42

London - FTSE 100: UP 1.0 percent at 8,219.12

Paris - CAC 40: UP 0.4 percent at 7,301.89

Frankfurt - DAX: UP 1.2 percent at 21,202.45

Tokyo - Nikkei 225: UP 0.8 percent at 34,267.54 (close)

Hong Kong - Hang Seng Index: UP 0.2 percent at 21,466.27 (close)

Shanghai - Composite: UP 0.2 percent at 3,267.66 (close)

Dollar/yen: DOWN at 142.92 yen from 143.09 yen on Monday

Euro/dollar: DOWN at $1.1316 from $1.1356

Pound/dollar: UP at $1.3226 from $1.3189

Euro/pound: DOWN at 85.57 pence from 86.08 pence

West Texas Intermediate: DOWN 0.1 percent at $61.48 per barrel

Brent North Sea Crude: DOWN 0.1 percent at $64.82 per barrel

F.Kang--SG

Featured

Ukrainian soldiers' lovers kept waiting as war drags on

Kateryna Halushka often sits alone, staring at her phone waiting for a sign of life from her boyfriend, a Ukrainian soldier fighting at the front.

Taxes on super rich and tech giants stall under Trump

Global tax plans targeting billionaires and multinational companies are running aground, with the United States torpedoing reforms under President Donald Trump.

'Pandora's box': alarm bells in Indonesia over rising military role

Greater military influence in government, reporters under threat and a stuttering economy -- Indonesian President Prabowo Subianto's first six months in power have triggered alarm bells for activists worried about a return to the country's authoritarian roots.

Another round of anti-Trump protests hits US cities

Thousands of protesters rallied Saturday in New York, Washington and other cities across the United States for a second major round of demonstrations against Donald Trump and his hard-line policies.