European Shares Rally As Automakers Surge On Tariff Exemption Buzz

(RTTNews) - European stocks advanced on Tuesday after U.S. President Donald Trump said he was considering a modification to the 25 percent tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other countries.

In economic releases, Germany's wholesale price inflation weakened in March after accelerating last month, data from Destatis showed.

Wholesale prices grew 1.3 percent year-on-year in March, following an increase of 1.6 percent in February.

Elsewhere, the U.K. jobless rate remained unchanged in the three months to February, the Office for National Statistics reported.

The unemployment rate was 4.4 percent in the December to February period, unchanged from the preceding period and matched economists' expectations.

The pan European STOXX 600 was up more than 1 percent at 505.03 after rallying 2.7 percent on Monday.

The German DAX surged 1.2 percent, France's CAC 40 rose 0.4 percent and the U.K.'s FTSE 100 was up 1.1 percent.

Automakers Renault, BMW, Mercedes Benz and Volkswagen were up 2-3 percent. Nivea maker Beiersdorf rose 1.2 percent after reporting a slight beat in first-quarter sales and confirming its FY25 outlook.

B&M European Value Retail jumped nearly 3 percent. The discount retailer delivered strong revenue growth and robust trading performance for the 52-week financial reporting period to 29 March 2025.

Sanofi fell about 1 percent and AstraZeneca edged down slightly after reports that the U.S. is preparing to announce sweeping tariffs on pharmaceutical imports within the next two months.

Advertising company Publicis Groupe rallied 2.1 percent as it reported a 9.4 percent rise in first-quarter revenue.

Telecom gear maker Ericsson soared 6 percent after Q1 core earnings exceeded estimates.

Luxury bellwether LVMH slumped 6 percent as first-quarter sales came in below estimates.