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Europe open: Auto makers in focus as Trump plans to lower environmental rules

Thu 04 December 2025 10:31 | A A A

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(Sharecast News) - European shares were up on Thursday morning with car makers in focus after US President Donald Trump decided to lower environmental standards and allow more polluting fossil fuel vehicles.

The pan-regional Stoxx 600 gained 0.29% to 577.9 at 1055 GMT.

"European markets have kicked off the day on a positive footing, coming off the back of an Asian session that has been dominated by stories out of Japan," said Marketscope analyst Joshua Mahony.

"The circa 2% gain for the Nikkei 225 came amid claims from BoJ Governor Ueda that the government's economic stimulus plans will positively impact economic growth, although it would also have inflationary effects."

"In Europe, the carmakers are leading the push higher, with strong gains across the likes of BMW, Daimler, Porsche, Mercedes, Volkswagen, and Stellantis."

Trump overnight said he would move to slash fuel economy standards implemented by his predecessor Joe Biden, making it easier for automakers to sell fossil fuel cars.

"While this is a move aimed at lowering costs for US consumers, it also provides a shot in the arm for European carmakers that have struggled to dominate the EV space given rampant Chinese competition," Mahon said.

Philips shares slumped on concerns about 2026 growth after comments from the Dutch health technology company at a conference hosted by Citi.

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