European stocks higher on trade truce

On Thursday German stocks jumped by the most in six weeks, leading European equity markets higher, with shares in auto makers finding relief after the European Union’s top official struck a truce on trade issues with U.S. President Donald Trump.

The gains were made before the European Central Bank releases its latest monetary policy decision after policy makers said in June they would taper asset purchases starting in October.

Germany’s DAX 30 index leapt 1.5%, cruising toward its best session since the 14 June. The surge in German stocks helped push the Stoxx Europe 600 index up by 0.5%, topped by the consumer goods and tech groups. But the oil and gas, basic materials and health care sectors lost ground. The pan-European index on Wednesday dropped 0.3%.

France’s CAC 40 index gained 0.7% and Spain’s IBEX 35 picked up 0.4%. The U.K.’s FTSE 100 index fell 0.1%.

Shares of auto makers were among top price performers after European Commission President Jean-Claude Juncker and Trump said after European trading closed on Wednesday that they had agreed to work toward “zero tariffs” and “zero subsidies on non-auto industrial goods.” Trump had threatened to impose tariffs on European autos but said he’ll hold off on any retaliation as long as discussions continue.

Trump, who met with Juncker at the White House, also said the EU would buy more U.S. soybeans and that he would work on resolving tariffs on European steel and aluminum.

European Central Bank President Mario Draghi will likely be asked about the EU-U.S. trade truce when he holds a press conference after the ECB’s monetary policy decision. The ECB isn’t expected to make waves on Thursday after saying in June said it would wind down asset purchases by the end of this year and suggested that rate hikes won’t take place until late in 2019.