Europe open: Markets rise as Trump expected to delay EU tariffs
By Duncan Ferris
Date: Tuesday 12 Nov 2019
(Sharecast News) - European stocks were higher on Tuesday morning, as auto stocks rose on the back of reports that US President Donald Trump will delay plans for tariffs.
At 0900 GMT, the Stoxx 600 was 0.1% higher at 405.64, as Germany's Dax climbed 0.3% to 13,234.80 and the French CAC 40 rose by 0.1% to 5,901.82. London's FTSE 100 was up 0.2% at 7,343.42
Reports suggest that Trump will use a speech at the Economic Club of New York to postpone the proposed 20% tariffs on vehicles and auto parts imported from the EU, while he could also reveal further details about trade negotiations with Beijing.
Markets.com analyst Neil Wilson said: "This poses all kinds of risks - on everything from China and trade to the Fed and impeachment. Markets will be on tenterhooks. The president's speeches are akin to throwing a dart blindfolded.
"We may get an update on planned US tariffs on EU autos, which are expected to be delayed for six months. The deadline for the president to kick this into the long grass is tomorrow."
European car makers such as Peugeot, BMW, Daimler, Volkswagen and Volvo were in the green ahead of the speech, which is scheduled for around 1700 GMT.
Elsewhere, Iliad surged after the French telecoms outfit confirmed it will pursue a €1.4bn share buyback programme, while its third quarter revenues beat consensus expectations after growth in customer numbers.
Shares in Infineon also climbed after said fourth quarter profits had risen despite an economic environment "fraught with uncertainty", while fellow chip maker Dialog Semiconductor followed suit after hiking margin forecasts.
German mail carrier Deutsche Post was among the top risers after it reported a jump in third quarter profits and said it expected the final months of the year to be driven by ecommerce and growth in its freight division.
Barry Callebaut dived after Jacobs Holding announced the successful private placement of its 2.85% stake in the company.
Swiss chemicals company Lonza dropped after confirming that chief executive Marc Funk will leave the company in January, having lasted less than a year in the role.
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