European Auto Stocks Under Pressure Amid Trade Tensions

European auto stocks face scrutiny as Trump's import duties on cars hit Asian manufacturers and rattles the global automotive industry. Major German brands face market pressures, while investors remain cautious over potential trade wars. The European Commission is considering its response to safeguard economic interests.

European auto stocks are in the spotlight as President Trump's recent announcement of import duties on cars and light trucks impacts Asian manufacturers and reverberates globally. German giants like Mercedes Benz, BMW, and Porsche are anticipated to endure significant market pressure.

The European automobiles and parts index, facing a decline, reflects these concerns, with Volkswagen notably vulnerable due to its manufacturing ties with Mexico. As the spectre of a trade war looms, the European Commission remains poised to assess and respond, prioritizing economic interests.

In the broader market, Asian hours saw muted movements, with currency fluctuations hinting at investor apprehension. The euro and yen witnessed slight variability as traders anticipate further developments. The potential for reciprocal tariffs next week leaves stakeholders on edge, pondering the implications for the global market landscape.

(With inputs from agencies.)