Europe Markets: European automakers join the global rally
It’s not just U.S. automakers such as Tesla and Ford that are rallying at the beginning of the new year.
JPMorgan reiterated overweights on all three, noting the restructuring at Stellantis and Renault and the launch of mid to premium models at Daimler. Stellantis and Amazon AMZN, -1.69% also agreed a deal where Amazon will provide it cloud solutions and buy electric Ram vans.
Tire maker Pirelli PIRC, +3.34% jumped 4% as JPMorgan upgraded it to overweight on strong business momentum, and car parts maker ElringKlinger ZIL2, +20.10% rallied 19% as the broker said it has strongly positioned itself in battery electric drive and fuel cell technology.
The Stoxx Europe 600 automobiles and parts index SXAP, +2.32% has already jumped 8% to start the new year — the strongest of any sector — with investors excited about electric vehicle potential.