European carmakers rise on hopes for tariffs relief

Shares in European automakers rise on hopes the sector will also be included in a potential deal or pause on U.S. tariffs, after U.S. President Donald Trump granted temporary reprieve for many countries

Trump's temporary pause, however, does not appear to affect duties on autos that are already in place

The pan-European STOXX automobiles & parts index .SXAP rises 5.4%, on track for its biggest one-day rise since July 2022

"I think the initial positive reaction is due to the hope that the market now has, either for a potential deal or for the pause to be extended to the automotive sector as well," Pal Skirta from Metzler says

Skirta says the market now seems to see a higher chance of negotiating an amicable solution with the U.S.

"This fuels the belief that a deal may be possible," he adds

Porsche Holding PSHG_p.DE, Volkswagen VOWG_p.DE, Porsche AG P911_p.de, BMW BMWG.DE, Mercedes-Benz MBGn.DE rise between 5.8% and 10.4%

Renault RENA.PA, Volvo Car VOLCARb.ST are up 4.4%-7.3%, Stellantis STLAM.MI jumps 9.1%

Auto parts makers and suppliers Continental CONG.DE, Valeo VLOF.PA and Forvia FRVIA.PA rise 4.8%-12.3%, German truckmaker Daimler Truck DTGGe.DE is up 7%