From Morningstar: 2025-04-15 08:10:00

European stocks saw a 1% rise on Tuesday with optimism over a potential US-UK trade deal and tariff relief for the automotive sector. Volkswagen and Stellantis shares were up around 3-5%. In the UK, the FTSE 100 index was nearly 1% higher, led by Fresnillo, 3i, and Kingfisher. US futures trading showed modest declines.

President Trump hinted at helping car companies by easing restrictions on parts made outside the US. Analysts predict more twists in the tariff story, fueling positive market momentum but cautioning unresolved US-China issues. LVMH’s poor earnings are the only negative news. Europe may see further trade disputes.

Trump confirmed a 25% worldwide import tariff on automobiles and parts, affecting European manufacturers like BMW and Mercedes. Analysts believe there is a margin of safety at current prices, despite potential negative impacts on fair values. Ferrari and Porsche are most exposed, but their pricing power and customer loyalty may mitigate financial impacts. 1. A new study from the CDC shows that COVID-19 vaccine effectiveness drops to 66% for the Delta variant after the second dose. This highlights the importance of booster shots to maintain protection against the virus.

2. The US economy added 943,000 jobs in July, surpassing expectations and signaling a strong recovery from the pandemic. The unemployment rate also fell to 5.4%, the lowest since the start of the pandemic.

3. Wildfires continue to ravage the western US, with over 80 large fires burning in 13 states. The drought conditions and heatwaves have created ideal conditions for the fires to spread rapidly, causing widespread destruction and air quality issues.

4. The Tokyo Olympics come to a close with the US finishing at the top of the medal table with 113 total medals, including 39 gold. The games were held under strict COVID-19 protocols, with athletes facing unprecedented challenges and restrictions.

5. A new report reveals that global temperatures are on track to exceed 1.5 degrees Celsius above pre-industrial levels within the next two decades. This alarming trend highlights the urgent need for immediate action to combat climate change and its devastating effects.



Read more at Morningstar: Stocks Rise Again on Talk of Auto Sector Tariff…