LIVE MARKETS-Recovering from peak tariff panic

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RECOVERING FROM PEAK TARIFF PANIC

Tariff uncertainty is still high, but we might already be past the panic point, at least for autos, according to Citi.

"Whilst it seems clear that at the very least EU OEM US import tariffs will remain in place, the time of peak tariff panic may now be behind us," writes Citi analyst Harald Hendrikse, acknowledging increased recession risks.

U.S. import tariffs have already sparked significant moves by car makers, from layoffs and price hikes, Hendrikse says, while noting that like many investors, he is still worried.

However, "any reduction in current (tariff and recession) uncertainty could see at least some SXAP recovery," he said referring to Europe's auto and auto parts share index.

The technical picture looks favourable, with all but one stock in Europe's STOXX Autos .SXAP now trading below their 200-day moving average, and the index having consistently troughed well before earnings revisions do.

(Danilo Masoni)

EARLIER LIVE MARKETS POSTS

HUMPTY DUMPTY HAS FALLEN, BUT HARD DATA DOESN'T YET SHOW IT CLICK HERE

EUROPE INC EARNINGS: "RISKS TO THE DOWNSIDE" CLICK HERE

BARCLAYS RECOMMENDS LONG 5-YEAR US TREASURIES CLICK HERE

BOUNCING BACK CLICK HERE

EUROPE BEFORE THE BELL: LVMH EARNINGS WREST FOCUS FROM TARIFFS CLICK HERE

MORNING BID: TAXES AND TARIFFS ON THE MIND AS RELIEF RALLY LIMPS ALONG: CLICK HERE