US openness on the trade front pushes luxury and cars

(Il Sole 24 Ore Radiocor) - The clearing of the air on tariffs, on the European and Chinese fronts, boosts two of the sectors most exposed to the issue, theautomotive and luxury goods. In particular, four-wheelers benefit from the White House's openness to an extension of the 9 July deadline for imposing tariffs on Europe, after the Trump administration said the deadline "is not crucial" and "could possibly slip". Washington's counterproposal to the EU arrived in Brussels and Commission President Ursula von der Leyen took the time to study the cards without going into detail, making it clear thatEurope is ready for a deal, but is nonetheless preparing for the possibility that a satisfactory square is not reached. French President Emmanuel Macron made it clear that if the US proposal was ultimately to impose tariffs at 10%, there would have to be compensation for US products on the EU market.

Luxury instead benefits from the fact thatthe US and China have signed a trade agreement, as President Donald Trump said, adding that he expects to reach an agreement with India soon, and confirmed by Commerce Secretary Howard Lutnick. Details are still lacking and Beijing has not yet commented, but investors want to see the glass half full, especially since a US-China agreement could also accelerate exports of rare earths to the United States, which are crucial for production in industry (semiconductors, automotive and aerospace in the lead). Thus, the Euro Stoxx 600 in the automotive and components sector is among the best in the Old Continent. At Piazza Affari Stellantis is among the best of the Ftse Mib and Ferrari also benefits from the uptrend in the luxury sector, in Paris Renault rises and in Frankfurt the Bmw , Mercedes-Benz Group , Porsche Automobil Holding Pref and Volkswagen .

On the luxury front, Milan's Brunello Cucinelli and Moncler , while in Paris Hermes, Lvmh and Kering rise. "The luxury sector is a steadily expanding global industry, growing at about twice the rate of the world's gross domestic product. It is a cyclical sector, influenced by various factors such as a sense of wealth and affluence," explain the analysts of Generali Asset Management, pointing out that "with regard totariffs and the weakness of the dollar, these are two factors that have been exerting a negative influence on the sector since the beginning of the year. We believe that companies with greater pricing power are able, in any context, to pass on any additional costs to consumers through price increases, thereby better preserving profit margins".