German stocks jumped by the most in six weeks Thursday, leading European equity markets higher, with shares in auto makers finding relief after the European Union’s top official struck a truce on trade issues with U.S. President Donald Trump.
The gains were made before the European Central Bank releases its latest monetary policy decision after policy makers said in June they would taper asset purchases starting in October.
What markets are doingGermany’s DAX 30 index DAX, +1.48% leapt 1.5% to 12,767.28, cruising toward its best session since June 14, FactSet data showed.
The surge in German stocks helped push the Stoxx Europe 600 index SXXP, +0.63% up by 0.5% to 389.08, topped by the consumer goods and tech groups. But the oil and gas, basic materials and health care sectors lost ground. The pan-European index on Wednesday dropped 0.3%.
France’s CAC 40 index PX1, +0.79% gained 0.7% to 5,463.96, and Spain’s IBEX 35 IBEX, +0.76% picked up 0.4% to 9,746.80. But the U.K.’s FTSE 100 index UKX, -0.08% fell 0.1% to 7,653.74.
Check out: European luxury stocks face a 30% drop in an all-out trade war, says UBS
The euro EURUSD, -0.1705% traded at $1.1729, unchanged from late Wednesday in New York. The shared currency was also unchanged against the pound EURGBP, -0.1237% at 0.8891 pence.
What’s driving the marketShares of auto makers were among top price performers after European Commission President Jean-Claude Juncker and Trump said after European trading closed on Wednesday that they had agreed to work toward “zero tariffs” and “zero subsidies on non-auto industrial goods.” Trump had threatened to impose tariffs on European autos but said he’ll hold off on any retaliation as long as discussions continue.
Trump, who met with Juncker at the White House, also said the EU would buy more U.S. soybeans and that he would work on resolving tariffs on European steel and aluminum. Trump, who recently called the EU a “foe” of the U.S., tweeted a message of “love” toward the bloc on Wednesday:
Obviously the European Union, as represented by @JunckerEU and the United States, as represented by yours truly, love each other! pic.twitter.com/42ImacgCN0
— Donald J. Trump (@realDonaldTrump) July 25, 2018
