Auto Stocks Rally on U.S.-Japan, EU Tariff Optimism

Global stock markets surged after the U.S. and Japan reached a trade deal establishing reciprocal 15% tariffs on autos, lower than the previously threatened 25%. This agreement sparked rallies in automaker stocks across Asia, Europe, and the U.S., and fueled expectations of a similar U.S.-EU tariff agreement that could avoid steeper tariffs. European indices rose on hopes for a comparable deal, while strong U.S. and eurozone corporate earnings and steady consumer confidence further boosted investor optimism. Economic data and upcoming central bank policy meetings also shaped market sentiment. Despite the rallies, some analysts cautioned that potential central bank decisions and broader economic uncertainties remain. The developments signaled optimism for multinational trade cooperation and relief for global auto markets.