From Morningstar: 2025-03-27 07:19:00

European carmakers saw a sharp decline in shares after Trump announced 25% tariffs on foreign-made cars. Mercedes Benz, Volkswagen, BMW, Porsche, and Stellantis all dropped. Renault, with minimal US exposure, traded higher. US and Japanese automakers also fell. EU plans reciprocal tariffs. Morningstar analyst expects tariffs to impact fair values negatively. European automakers increasing US exposure to offset slowing growth in Europe and China. BMW and Mercedes heavily reliant on US sales. Stellantis and Volkswagen also impacted. ACEA calls tariffs a “watershed moment” for the auto industry. Stifel analysts expect negative impact on consensus, outlooks, and efficiency. 1. The stock market saw a significant increase today, with the S&P 500 reaching a new record high of 4,500 points. Investors are optimistic about strong corporate earnings and a robust economic recovery.

2. The latest unemployment report shows that jobless claims have fallen to 350,000, the lowest level since the start of the pandemic. This indicates a strengthening labor market as businesses continue to hire and expand.

3. In international news, tensions are escalating between Russia and Ukraine as Russia conducts military exercises near the border. The United States and European allies have expressed concern over the potential for conflict in the region.

4. A new study has found that the Covid-19 vaccine provides strong protection against the Delta variant, with an efficacy rate of over 90%. Health officials are urging more people to get vaccinated to prevent further spread of the virus.

5. The housing market continues to boom, with home prices rising by 15% compared to last year. Low interest rates and high demand are driving the market, making it a seller’s market with limited inventory and fierce competition among buyers.



Read more at Morningstar: Trump Tariffs Rattle European Auto Stocks as EU…