European markets were sharply lower earlier due to the ongoing US-China trade spat, but they have just come back viciously. Bloomberg reported that the US President Donald Trump is planning to delay imposing tariffs on EU auto imports by 6 months. The news caused shares in BMW, Daimler and other carmakers to spike. The German 10-year bond yield rebounded sharply, causing the EUR/USD to go back to the positive on the day. Even the US markets caught a bid, but understandably it was European markets which saw the biggest response. Whether or not the news will be confirmed remains to be seen. Traders are buying European car shares and the euro now and will be asking questions later…

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