European shares are mainly higher Tuesday afternoon, as auto stocks remain upbeat following the agreement between the US and Mexico to update the NAFTA trade agreement. Royal Unibrew shares are also on the up, amid strong H1 results and a third full year outlook upgrade.
By 1455 BST, the EUROSTOXX 600 was 0.19% higher, while the EUROSTOXX 50 had gained 0.07%. The regional bourses were a little mixed. The German DAX rose 0.09%, the French CAC was 0.40% in the green, but the Spanish IBEX lost 0.18%.
US-Mexico trade agreement boost
With trade being a hot topic for investors right now, the news that the US and Mexico have agreed to overhaul the North American Free Trade Agreement (NAFTA), has been welcomed by the markets.
The development puts additional pressure on other countries, including Canada, to agree new trade terms with the US, including on auto imports and exports between the two countries.
The NAFTA news was seen as a positive development by investors and auto stocks have been notable beneficiaries, likely as it makes it a little less likely that punitive import tariffs will be introduced to European car makers.
- BMW shares were 1.59% higher at €84.51.
- Renault shares rose 2.34% to hit €74.80.
- Volkswagen shares climbed 1.91% to €144.16.
Aside from auto stocks, Dutch beverage business, Royal Unibrew shares are strongly in the green, Tuesday.
The gain follows the release of tis H1 earnings data Monday, which showed it had the most successful H1 on record. The brewer also upgraded its full year 2018 earnings outlook, for a third time in a year and added its Terme di Crodo acquisition had proved positive sooner than expected.
Royal Unibrew shares rose 3.80% to DKK559.50.
However, another Copenhagen listed stock, Sydbank, reported disappointed earnings which missed analyst expectations. That financial release sent Sydbank shares tumbling 10.66% to DKK195.30.