Automotive sector shines and Bayer flourishes in 'green' Europe

The easing of trade tensions over the tariff war generated significant sentiment on stock markets across Europe for the second day in a row on Tuesday. As on the previous day, the automotive sector was among the biggest gainers.

The session also brought a lively day among companies investing in green energy, as a result of positive winds that have emerged on American soil. At stake is the idea that the elimination of incentives for clean energy projects should happen more gradually than expected. This is because Republicans in the US House of Representatives propose that the measure not be as abrupt as expected.

As a result, on the Lisbon stock exchange, EDP Renováveis ​​shares soared 7.49% to €9.33. This was the biggest contributor to the gains of the PSI index, which rose 1.11% to 7,190 points in Tuesday's session.

This was followed by increases of 3.90% to 4.158 euros at Mota-Engil, 2.99% to 8.28 euros at Corticeira Amorim, 2.80% to 6.47 euros at Altri and 1.73% in the case of EDP, whose shares rose to 3.404 euros.

In the opposite direction, Jerónimo Martins fell 1.11% to 21.46 euros, while BCP fell 0.66% to 0.5984 euros.

Among the benchmark indices of the main European counterparts, there were less significant increases than that recorded in the PSI. Nevertheless, the sentiment resulting from the easing of tensions associated with the trade war was once again noticeable, especially due to the agreement established between the USA and China. The agreement was announced on Monday morning and dictated the reduction of tariffs on imports between the two countries, as well as the suspension of the same tariffs for 90 days.

While there were increases in this area on Monday, the positive sentiment remained, particularly in the automotive sector, with jumps of over 3% in BMW and Volkswagen, while Stellantis appreciated by over 4%. Also in the business sphere, German pharmaceutical company Bayer presented its first-quarter results and excited the markets, so much so that shares rose almost 3%.

In this context, increases of 0.99% were recorded in Spain, 0.38% in Germany, 0.36% in Italy and 0.30% in France, while the Euro Stoxx 50 aggregate index advanced by 0.43%. Only the United Kingdom performed in the opposite direction, losing 0.09%.

This Wednesday will bring results from US technology companies Sony and Cisco, as well as from Hungary's Magyar Telekom, which is listed on the London Stock Exchange. In macro terms, markets will be paying close attention to German inflation data for April.