UPDATE 2-Auto-stocks drive European shares higher on tariff delay hopes

Reuters

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    * Most European bourses rise, Milan lags 
    * Auto stocks surge on possible tariff reprieve 
    * Raiffeisen Bank, Credit Agricole fall after results

 (Updates to close, adds graphic and quote, recasts)
    By Medha Singh and Aaron Saldanha
    May 15 (Reuters) - European stocks surged late in
Wednesday's session to wipe away early losses after U.S.
officials said President Donald Trump was expected to delay auto
tariffs by up to six months.
    A formal announcement is expected by Saturday, they said.
    The news spurred investors to boost positions in
tariff-sensitive firms, aiding a recovery among a swathe of
European stocks.  urn:newsml:reuters.com:*:nL2N22R0PD
    The pan-European STOXX 600 index  .STOXX  rose 0.5%, buoyed
by a 2% gain in shares of tariff-sensitive auto makers and their
suppliers  .SXAP , with BMW  BMWG.DE  tacking on 3.1%. 
    The broad benchmark had fallen as much as 0.7% earlier in
the day, while auto stocks had plumbed a 1-1/2 month trough,
down 2.1%.    
    Atlantic Markets' John Woolfitt said it appeared the market
was relieved that Trump "can actually act in a civilised manner
and isn't on a total rampage inciting trade wars across the
globe," giving the partnership and relationship with the EU
"some much needed respite".
    "Whilst he is entangled in the ongoing dispute with China,
it gives the impression he is reluctant to travel down the same
road with the EU."
    Frankfurt's auto-heavy DAX  .GDAXI  and London's FTSE 100
 .FTSE  rose 0.9% and 0.8%, respectively, while their
Milan-traded peers  .FTMIB  dipped 0.1% on weakness among the
country's banks.
    Shares of Italian lenders  .FTIT8300  have been pressured
this week, as yields on the sovereign's bonds continue to rise a
day after Deputy Prime Minister Matteo Salvini said Rome was
ready to break EU fiscal rules.  urn:newsml:reuters.com:*:nL5N22R27B GVD/EUR 
    "Pressure on Italy is mounting ... the doom loop, linking
the banks to the sovereign, remains strong," said Marc C.
Chandler, chief market strategist at Bannockburn Global Forex. 
    Italy's banks could come to the rescue of Carige  CRGI.MI 
to safeguard financial stability after BlackRock dropped a
planned bid for the struggling regional lender, UniCredit's
<CRDI.MI > chairman said.  urn:newsml:reuters.com:*:nS8N22508B
    However, the chief executive of Italy's top retail bank,
Intesa Sanpaolo  ISP.MI , said it would not put any more money
into an industry fund which could rescue Carige.  urn:newsml:reuters.com:*:nL5N22R4AA
    On the whole, European banks  .SX7P  dipped 0.1%, weighed
down by some disappointing earnings.
    Some investors exited positions in Austria's Raiffeisen Bank
International (RBI)  RBIV.VI  and French lender Credit Agricole
 CAGR.PA  as first quarter profit figures disappointed, sending
their shares 3.7% and 2.6% lower, respectively.
 urn:newsml:reuters.com:*:nL5N22R149 urn:newsml:reuters.com:*:nL5N22R0WC
    London-listed CYBG Plc  CYBGC.L  bucked the trend among
lenders, rising 3.3% after swinging to a first-half
profit. urn:newsml:reuters.com:*:nL4N22R1UF
    Thyssenkrupp  TKAG.DE  dived 5%, nearing the price it opened
at on Friday, when short-sellers rushed to cover their bearish
exposure after the industrial conglomerate announced plans to
spin-off its elevator business.  urn:newsml:reuters.com:*:nL5N22R5Z1
    E.ON  EONGn.DE  tumbled 5.8%, after Goldman Sachs downgraded
the energy company's stock, which was also trading ex-dividend.
 urn:newsml:reuters.com:*:nFWN22R0OI urn:newsml:reuters.com:*:nL5N22R28Q

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
STOXX 600 and auto and parts sub-sector rise on likely U.S. auto
tariff reprieve    https://tmsnrt.rs/2Eb463k
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 (Reporting by Medha Singh and Aaron Saldanha in Bengaluru;
Editing by Alison Williams)
 ((Aaron.Saldanha@thomsonreuters.com; +91 80 6749 1130; Reuters
Messaging: Aaron.Saldanha@thomsonreuters.com@reuters.net))

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