FX.co ★ Auto Surge Drives European Stocks Higher

European stocks experienced an uptick on Tuesday, with the STOXX 50 advancing by 0.3% and the STOXX 600 increasing approximately 0.7%. The market's optimism was primarily driven by the prospect of a delay in auto tariffs and the acceleration of the earnings season. Investor confidence was further boosted by President Trump's comments on Monday, suggesting he might temporarily exempt imported vehicles and parts from tariffs to allow automakers additional time to bolster production within the US. The automotive sector led the upward movement, with notable gains among top players such as Mercedes-Benz rising 2.9%, BMW 2.5%, Volkswagen 2.8%, Stellantis 4.3%, and Renault 1.9%. Additional sectors, including media, technology, oil and gas, and real estate, also traded positively. In contrast, luxury stocks underperformed, largely due to a nearly 6% decrease in LVMH shares, following the disclosure of a steeper-than-anticipated 3% decline in first-quarter sales. Meanwhile, Ericsson soared by 7% after surpassing core earnings expectations, and Publicis increased by 3% after reporting a 9.4% boost in Q1 revenue and reaffirming its 2025 financial guidance.