A look at the day ahead in European and global markets |
|
| By Ankur Banerjee, Asia Finance & Markets Breaking News Correspondent |
|
|
Investors will be fixated on European auto stocks on Thursday after Trump's announcement of duties on imported cars and light trucks, which hit Asian car makers' shares and drew a strong rebuke from the auto industry. German automakers Mercedes Benz, BMW and Porsche are all likely to come under heavy pressure. The European automobiles and parts index hit a seven-week low on Wednesday and is poised to fall further. |
|
|
German automakers exposed |
A logo of Volkswagen is seen inside a car dealer in Nijmegen, Netherlands February 26, 2025. REUTERS/Piroschka van de Wouw |
The region's top carmaker, Volkswagen, is particularly exposed, with 43% of its U.S. sales sourced from Mexico, according to S&P Global Mobility. Europe's carmakers exported around 800,000 vehicles to the United States last year, according to official U.S. trade data, about four times the number of cars exported by the U.S. to Europe. Chrysler parent Stellantis and Volvo Cars will also be in focus. Automakers aside, market moves during Asian hours were muted as investors take a wait-and-see approach, although futures point to a lower open in Europe. The euro hit a three-week low in early Asian hours but has since inched back up. |
|
| The Canadian dollar was steady and the Mexican peso was 0.5% weaker. The yen was a tad stronger. Still, the spectre of a wide-ranging trade war looms large, leaving investors skittish and risk-averse. The European Commission said it would assess Trump's tariffs and continue to seek negotiated solutions, while safeguarding its economic interests. The auto tariffs, if left in place for an extended period, could add thousands of dollars to the cost of an average U.S. vehicle purchase. Nearly half of all cars sold in the U.S. last year were imported, according to research firm GlobalData. Investor attention will also focus on reciprocal tariffs due to be announced next week. Trump indicated the measures may not be the like-for-like levies he has been saying he would impose. |
Graphics are produced by Reuters. |
|
|
Key developments that could influence markets on Thursday: |
- Possible responses to Trump's auto tariffs
|
Graphics are produced by Reuters. |
|
|
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. |
Morning Bid is sent every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. Want to stop receiving this email? Unsubscribe here. To manage which newsletters you're signed up for, click here. Terms & Conditions and Privacy Statement |
|
|
|
No comments:
Post a Comment