DAX Broadly Higher, Supported by Car Sector Growth
European markets rose today, as hopes for softening US trade rhetoric supported the automotive sector. The German DAX stock index is trading at 12.505 level, having gained 1.58%.
Shares of automakers grew by more than 3.6% amid news that German automakers are now ready to support the abolition of EU tariffs on cars imported from the US. The US ambassador to Germany reportedly told German automakers that President Donald Trump would suspend the process of imposing duties on cars imported from the EU if the unit also canceled tariffs on American cars. BMW is up 4.97%, Daimler has climbed 4.58% and Volkswagen has jumped 4.79%.
Industrial orders in Germany increased more than expected in May. Data from the statistical office of Destatis showed that production orders increased by 2.6% in May after a decrease of -1.6% in April. Economists had expected growth of 1.1%. On an annualized basis, production orders increased by 4.4%, which is much more than in April, when orders increased by 0.8%. Economists forecast an increase of 1.7%.