European car makers' shares rise after U.S. President Trump and European Commission President Jean-Claude Juncker agreed to hold off on further tariffs and work to reduce trade barriers, alleviating investors' worries. "We believe the key fact is no immediate EU/US tariffs are a good thing with the market pricing in 50-60% probability of trade war in autos as of yesterday," says Evercore ISI. An EU-U.S. statement said the zero-tariff initiative involves "non-auto industrial goods." The exclusion of autos should be viewed as a "bargaining chip to make sure an overall zero-tariff trade is being worked on," Evercore says. Daimler trades 1.3% higher, Audi and parent Volkswagen are up 2% and 2.8% respectively, and Porsche and BMW gain 3.4% and 2.6% each. Renault is up 1.5%, Peugeot rises 2.5% and Fiat gains 4.1%. (max.bernhard@dowjones.com; @mxbernhard)

(END) Dow Jones Newswires

July 26, 2018 04:46 ET (08:46 GMT)