European Auto Stocks Rally After Sales Rise For Second Month In A Row
European auto stocks are on watch midweek after new car sales in the region were up for the second month in a row.
Supply chain issues for the industry overseas are beginning to ease, according to Bloomberg, who noted on Tuesday morning that the Stoxx 600 Automobiles & Parts Index was up 2.2% on the session.
The index was being led by names like Mercedes-Benz and Volvo, who were both up more than 3% on the session.
Sales data out of the European Union was a tiny beacon of optimism for a global economy where the supply chain has been gridlocked since the beginnings of the pandemic - especially in the automotive sector.
1.05 million vehicles were delivered in September in the EU, European Free Trade Area and UK, the report says. This marks a 7.9% increase from last year, according to data from the European Automobile Manufacturers’ Association.
It remains to be seen whether the optimism will turn out to be a one-off of not. Deliveries are still lagging behind 2019 levels and Bloomberg notes that "there may be tough times ahead amid worsening macroeconomic conditions".
Additionally the semiconductor world still remains in chaos, with new White House export controls forcing the industry, which was just starting to recover from the crisis in endured throughout Covid, to once again shuffle resources. For now, at least, this seems to have little effect on automakers, especially overseas.
"All in all, we see some recovery,” analysts at Oddo BHF said, citing easy year over year comps and "gradual improvement in the availability of chips".
Joining names like Mercedes and Volvo, Renualt was also up 3.2% on the session, as the manufacturer works on "the final stages of concluding a deal this week to reduce its stake in Japanese partner Nissan" and re-engineering the cooperation between the two companies.