The FTSE 100 (^FTSE) and Germany's DAX (^GDAXI) were climbed in early trade on Tuesday, as market watchers parse yet more information being drip-fed by the Trump administration about reprieves on tariffs for car manufacturers and other sectors.

President Trump's number two, JD Vance, said there was a "good chance" of reaching a trade deal with the UK.

"We're certainly working very hard with Keir Starmer's government," Vance said in an interview on Monday with online publication UnHerd.

Trump also hinted that car tariffs may be halted or dialled back.

“I’m looking at something to help some of the car companies, where they’re switching to parts that were made in Canada, Mexico, and other places, and they need a little bit of time because they’re going to make them here,” Trump said, adding that “they need a little bit of time, so I’m talking about things like that.”

The FTSE 100 (^FTSE) rose 0.7% in early trade. B&Q parent company Kingfisher (KGF.L) was among the top risers, up about 2.7% following the announcement of a share repurchase programme. The moves higher come following a jobs report that showed UK pay growth remains high. Germany's DAX (^GDAXI) rose 1% ahead of the ZEW economic sentiment reading. The CAC 40 (^FCHI) in Paris fell 0.4%, dragged lower by luxury brands LVMH (MC.PA) and Kering (KER.PA). LVMH reported falling sales on Tuesday, as shoppers cut back on luxury goods. On Tuesday investors will be watching corporate earnings. Bank of America (BAC), Citi (C), Johnson & Johnson (JNJ), and PNC (PNC) are set to report their results before the bell in the US.

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45 mins ago

Lucy Harley-McKeown

Asian indexes buoyed by car tariff delay

Asian markets rallied, with Japan leading the surge, after President Donald Trump signalled a possible halt to planned auto tariffs—easing investor nerves already soothed by the decision to delay duties on certain consumer tech products. 52 mins ago

Lucy Harley-McKeown

BoE likely to stick to gradual UK rate cut plan

Paige Tao, economist at PwC UK, said: 59 mins ago

Lucy Harley-McKeown

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Lucy Harley-McKeown

US stock futures on edge

US stock futures fell as President Trump's rapid trade policy shifts kept investors on edge ahead of the next batch of corporate earnings.

Futures attached to the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) slumped 0.1%. Futures attached to the tech-heavy Nasdaq Composite (NQ=F) fell 0.2%.

On Monday, US stocks rose on the heels of a remarkably volatile week for markets following news the Trump administration would treat tariffs on key electronics separately from duties on specific countries and would impose them at a later date. The president also floated possible tariff exemptions for car companies, sending auto stocks soaring.

But any clarity emerging on Trump's trade continued to remain elusive as the president simultaneously pushed forward with plans to place tariffs on pharmaceutical and semiconductor imports. Today at 7:14 AM UTC

Lucy Harley-McKeown

More Trump tariff concessions?

Auto stocks jumped on Monday afternoon after President Trump hinted tariff relief might be coming.

“I’m looking at something to help some of the car companies, where they’re switching to parts that were made in Canada, Mexico, and other places, and they need a little bit of time because they’re going to make them here,” Trump said, adding that “they need a little bit of time, so I’m talking about things like that.”

Trump didn’t say whether relief was coming for the 25% tariffs already in place for foreign auto imports or the 25% auto parts tariffs that will be finalized by May 3.

Even auto imports covered by the USMCA between the US, Mexico, and Canada are subject to tariffs, but parts originating from the US can be backed out of the tariff calculation.

Shares of Big Three automakers General Motors (GM), Stellantis (STLA), and Ford (F) all popped over 3% Monday.

Recently, automakers have been scrambling to respond to the daily drip of tariff escalations that began once Trump started his tariff war in earnest following his April 2 "Liberation Day" event.

Read more on Yahoo Finance Today at 7:11 AM UTC

Lucy Harley-McKeown

UK pay growth remains high as jobs market softens

Vicky McKeever writes:

UK pay continued to grow much faster than inflation in the three months to February, though the jobs market showed signs of slowing down.

The average regular earnings excluding bonuses rose 5.9% in the period on an annual basis, according to data from the Office for National Statistics (ONS), easily outstripping inflation, which came in at 2.8% in February.

Annual growth in real terms — adjusted for inflation — was down slightly, at 2.1%, from the previous year, compared with 2.2% for the 12 months to January.

There were 781,000 job vacancies between January and March, according to estimates from the ONS, which was down 26,000 on the previous three months. It was the first time since the period between March and May of 2021 that there have been less openings than there were before the pandemic.

Early estimates showed that the number of payrolled employees fell by 78,000 in March, following a fall of 8,000 in February.

Read more on Yahoo Finance UK Today at 7:10 AM UTC

Lucy Harley-McKeown

Good morning!

Hello from London. Lucy Harley-McKeown here, with the latest news about markets and the economy.

This morning we've already had all-important UK jobs and wage data. Later we'll be looking to Germany's ZEW economic survey and earnings from Johnson & Johnson (JNJ), Bank of America (BAC), Citigroup and United Airlines (UAL).

Let's get to it.

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