Risk assets climb after reports that Trump will delay decision on auto tariffs

Author: Adam Button | Category: News

Autos spared

Automotive stocks led a broad rebound in risk assets after multiple reports that Trump won't hit autos with import duties. A decision is due on Friday but Trump will reportedly delay it by up to six months to allow for more negotiations with the EU and Japan.

The S&P 500 is now up 10 points compared to a 10 point decline before the headlines. USD/JPY is back to flat on the day at 109.58 from as low as 109.16.

The decision shows Trump doesn't want a trade war on two fronts but it could also be seen as an acknowledgement that the battle with China could be prolonged.

The EU would have been in the cross-hairs along with Japan and the euro has responded positively, climbing to 1.1225 from 1.1180. However the market isn't exactly frothing with excitement as it's slipped back to 1.1206.
EURUSD chart
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