European Auto Stocks Jump 4.2% on Tariff-Cut Optimism

European auto stocks rallied on Wednesday, with the sector’s benchmark index climbing 4.2%, its largest single-day advance since February. The gains were led by Germany’s major manufacturers: Mercedes-Benz Group rose as much as 3.7% in early Frankfurt trading, BMW added 3.4%, Daimler Truck gained 2.8%, Traton 1.9%, and Porsche 1.6%. Volkswagen also traded higher. Traders attributed the surge to fresh optimism that trans-Atlantic trade barriers on vehicles could ease after Washington and Tokyo struck an agreement lowering U.S. tariffs on Japanese cars to 15% from 25%. Automakers said they are increasingly hopeful that ongoing EU-U.S. talks will yield a comparable outcome, potentially boosting margins and export volumes for the industry’s largest regional players.