European markets close higher as autos climb 3.2%


European stocks rebounded toward the end of Tuesday’s session amid recovering investor sentiment worldwide, with autos emerging as the leading performer with a 3.2% rise.

The pan-European Stoxx 600 climbed 0.65%, while technology stocks were one of only a few sectors still in the red with a 0.2% decline.

Investor sentiment began to recover Tuesday as U.S. President Donald Trump, on the second day of his state visit to Britain, met with U.K. business leaders and promised British Prime Minister Theresa May a “very substantial trade deal.”

Tensions surrounding the visit ratcheted up on Tuesday, however, as protests began to assemble across the English capital. Market-watchers will be paying close attention as to what Trump and Prime Minister Theresa May could say during the following days, whether that be on trade, Brexit or other matters concerning the two nations.

Also on Tuesday, t he Chinese Ministry of Commerce said that the trade conflict with the U.S. will need to be resolved through further talks, helping to buoy sentiment on Wall Street ahead of the open.

In the latest surrounding the U.S.-Mexico scenario, officials from both nations have begun trade discussions, with Mexico cautioning the U.S. that any levies would injure both nations, and potentially cause hundreds-of-thousands of Central Americans to migrate north in the future, according to Associated Press.

In terms of individual stocks, British stockbroker Hargreaves Lansdown fell 4.6% during the morning session. The firm is the biggest backer of the ailing Woodford Equity Income fund, run by renowned U.K. fund manager Neil Woodford, which announced Monday that it would suspend trading following “an increased level of redemptions.”

Shares of French gaming firm Ubisoft fell 3.2% after it was revealed that the Guillemot family company had sold shares worth 14.4 million euros. German telecommunications provider 1&1 Drillish emerged as the top performer in the Stoxx 600, rising 4.8%

Meanwhile, Euro zone inflation fell more than expected last month, adding to worries about weak price pressure and reinforcing the case for more stimulus by the European Central Bank. Inflation in the 19 countries sharing the euro fell to 1.2% in May from 1.7% in April, below expectations of 1.3% and more than reversing a one-off surge related to the timing of Easter. That’s according to Reuters.