European Markets React to the Auto Industry
European stocks extended declines Wednesday but Wall Street could be looking at a modest rebound after the biggest single-day loss for U.S. markets in three weeks amid ongoing concern over President Donald Trump's handling of the crisis in North Korea and the potential costs of Hurricanes in Texas, Louisiana and Florida.
The Stoxx Europe 600 index, the broadest measure of regional share prices, was marked 0.34% lower by mid-morning in Frankfurt as benchmarks around the region followed Asia markets into the red and gold prices tested another 11-month high amid the flight-to-safety trading that took the price of the bullion to just under $1,340 an ounce.
In Europe, Daimler AG DDAIY led auto stocks higher amid speculation that the Mercedes maker is planning a change in its corporate structure that could lead to the separation of its €31 billion ($37 billion) truck and bus unit.
Daimler shares were marked 2.8% higher in the opening 90 minutes of trading in Frankfurt and changing hands at €63.95 each, the highest since July 19, after Goldman Sachs analysts upgraded the German automaker to "Buy" with 12-month price target of €81.00. The move lifted rival automakers BMW AG and Volkswagen AG, the world's second-biggest carmaker, to the top of the DAX performance index leaderboard and boost share prices for French carmakers Renault SA and Peugeot SA 2.1% and 1.3% higher respectively.
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