Frankfurt am Main, Germany, Jul 26 – Shares in German carmakers BMW and Volkswagen surged more than 4.0 percent Thursday morning before falling back, as investors welcomed an EU-US agreement to smooth over trade differences that could have harmed the industry.,
Volkswagen stock was up 3.0 percent at 150.32 euros ($176.28) by 0750 GMT, while BMW had gained 2.4 percent to trade at 81.81 euros, against a DAX index of blue-chip German shares up 1.35 percent.
But Mercedes-Benz Daimler lost out, shedding 0.5 percent to trade at 57.58 euros after reporting disappointing second-quarter results.
US President Donald Trump and EU Commission President Jean-Claude Juncker said Wednesday they would launch a “new phase” in the transatlantic trading relationship.
Juncker had travelled to the White House for last-ditch talks to fend off American tariffs on car imports.
Trump had previously ordered the Department of Commerce to look into charging border taxes of up to 25 percent on vehicles from the EU.
Washington and Brussels will “work together towards zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods,” Trump said.
In addition, the EU has made a commitment to buy US soybeans and natural gas.
“Obviously the European Union, as represented by @JunckerEU and the United States, as represented by yours truly, love each other!” Trump tweeted, along with a picture of him and Juncker embracing.
German Economy Minister Peter Altmaier tweeted: “Congrats to @JunckerEU, @realDonaldTrump: Breakthrough achieved that can avoid trade war & save millions of jobs! Great for global economy!”