European car stocks rise, US-Japan trade agreement boosts market confidence.

The US-Japan trade agreement has sparked optimistic expectations in the market for a possible reduction in US tariffs on European cars, leading to a rise in European car manufacturers' stock prices. Volvo's stock price surged by as much as 17%, marking the largest intraday gain since February 2024. Stock prices of BMW, Mercedes-Benz Group, and Volkswagen also rose. Previously, the US had set tariffs on imported Japanese cars at 15%, lower than the 27.5% imposed by President Trump since April.