European shares are trading a little higher around midday Tuesday as tensions surrounding Italian politics ease. A potential boon in the form of a lower auto import tariff in China has also provided some support to investors.
By 1135 BST, the EUROSTOXX 600 was flat, while the EUROSOTXX 50 gained 0.11%. Regional bourses, meanwhile, were a little mixed. The German DAX rose 0.08, while the Spanish IBEX was 0.53% higher. The French CAC, however, edged 0.08% lower.
Italian political concerns ease
After days of politically-induced downward pressure, investors are positive on Italian stocks Tuesday as the country’s president considers the candidate put forward by the 5-star, League coalition, to lead Italy’s Government.
Elsewhere a likely decision by China to lower import charges for European autos also proved positive and helped the sector make notable gains, early Tuesday.
Reports suggest China passenger car and car part import duties charges could be reduced by a little more than half to 12% from the current 25% level, by as soon as July 1st.
Volkswagen shares rose 0.83% to €174.54, Fiat Chrysler shares were 1.68% higher at €19.35, while Daimler shares gained 0.82% to trade at €67.94 and BMW shares were 1.39% in the green at €89.80.
Other stock movers
Elsewhere, Tuesday there were other stock moves helping to drive the broader markets.
Airbus shares lost 0.54% to trade at €100.28 after it said it would comply with the final WTO ruling in the US/EU trade dispute where the US claims Airbus has received illegal state subsidies.
Airbus has made similar claims against its competitor Boeing and a final ruling on the Boeing case is expected later in the year.
Deutsche Post shares, meanwhile, are climbing higher after UBS upgraded its view of the stock to ‘buy’ from ‘neutral’. Deutsche Post shares rose 0.73% to €34.30.