The relief rally in Italian bonds may not be mirrored in all European stocks, as automakers face the threat of more tariffs from the U.S. German equity futures fall the most among European contracts and Volkswagen, Daimler and BMW may get hit after the White House started aninvestigation into whether car and truck imports threaten national security.
Before this development, European exporters already had big event risk hanging over them — the June 1 deadline for a possible extension in the EU exemption from U.S. metal levies. The move by the U.S. will only add to these jitters, especially for Germany’s manufacturing-driven economy.
Source: Bloomberg Pro Terminal
Trader Georgi Bozhidarov