European autos rise as U.S.-Iran deal eases cost concerns
BUZZ-European autos rise as U.S.-Iran deal eases cost concerns ** European auto stocks rise sharply after the U.S. and Iran agreed to halt the war and reopen the Strait of Hormuz, easing concerns over oil-linked input costs
** The pan-European autosmobiles and parts index .SXAP is up 3.3%, leading sectoral gainers and trimming year-to-date losses to around 10%
** BMW BMWG.DE, Mercedes MBGn.DE, Porsche P911_p.DE, Volkswagen VOWG_p.DE, Renault, Stellantis STLAM.PA and Volvo Cars VOLCARb.ST rise between 2% and 5%
** "The European industry still makes most profits in ICE vehicles, in the short run they will benefit from a better competitive position of these vehicles and this matters for short term profits," says ING Research senior economist Rico Luman
** Middle East energy supply relief could ease input costs for materials and components such as aluminium, plastics and oil-linked products like tyres, he adds
** Car parts makers Continental CONG.DE, Schaeffler SHA0n.DE, Valeo VLOF.PA and Forvia FRVIA.PA gain 3-5%
(Reporting by Amir Orusov and Olivier Cherfan)
((Amir.orusov@thomsonreuters.com ; olivier.cherfan@thomsonreuters.com))
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