FR Valeo SE

   By Max Bernhard 
 

Shares in European car makers and suppliers traded higher on Monday, fueled by President Trump's comment on Twitter that China has agreed to cut tariffs on American-made cars.

German car makers Daimler AG (DAI.XE) and BMW AG (BMW.XE), two of the biggest exporters of U.S.-made cars to China, traded 6% and 6.1% higher respectively at 0830 GMT. Competitor Volkswagen AG (VOW.XE) was up 4.8%.

Italian-American manufacturer Fiat Chrysler Automobiles NV (FCA.MI) was up 4.1%, while France's Renault SA (RNO.FR) and Peugeot SA (UG.FR) were up 2.1% and 3%, respectively.

Suppliers' shares also received a boost, with Schaeffler AG (SHA.XE) and Continental AG (CON.XE) trading 6.7% and 3.3% higher, while Valeo SA (FR.FR) was up 6.8%.

The news eased some of the worries that have been weighing on auto shares recently. Car makers' shares have been battered by trade tensions over the past months, as the industry struggles with high upfront investments into electric vehicles and self-driving cars, as well as the costs from adjusting to new, stricter emissions-testing rules in Europe.

Mr. Trump's tweet followed G-20 summit in Buenos Aires, where the U.S. postponed its threat to increase tariffs on $200 billion in Chinese goods to 25% from 10%.

"China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%," Mr. Trump said in the tweet.

Chinese officials have neither confirmed nor denied the tariff plan as reported by Mr. Trump.

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

December 03, 2018 04:08 ET (09:08 GMT)

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