LONDON, United Kingdom (AFP) — Stock markets diverged Tuesday as investors assessed the impact of tariffs on corporate earnings and digested a report that President Donald Trump might spare automakers from some of his levies.

Wall Street opened mixed, with the Dow rising while the tech-heavy Nasdaq and the broad-based S&P 500 fell.

In Europe, the London FTSE 100 index and Frankfurt’s DAX were up in afternoon trading but the Paris CAC 40 was in the red.

“The good news of the day is that it’s been a few days since we last heard fresh attacks by Trump,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

“It feels like he’s been obliged to slow down the pace and intensity of his attacks. The bad news is, there is no clarity regarding the tariff situation,” she said.

Investors were weighing a Wall Street Journal report that the White House will spare automakers — already facing 25-per cent tariffs — from further levies, such as those on steel and aluminium.

The move is aimed at making sure the various tariffs Trump has unveiled do not stack up on top of each other.

The news prompted US auto giant General Motors to push back its earnings conference call to Thursday.

It still released its earnings statement on Tuesday, showing its first-quarter profit fell 6.6 per cent to $2.8 billion, though it was better than expected.

The US automaker also said it was re-examining its 2025 outlook in light of uncertainty over US tariffs.

GM shares fell more than three per cent in early deals.

In Europe, shares in Volvo Cars sank more than 10 per cent after it announced plans to cut costs by almost $2 billion, including through job cuts, as its profits fall.

“Tougher market conditions and lower volumes combined with increased price pressure and tariff effects are impacting profitability,” Volvo Cars chief executive Hakan Samuelsson said.

Shares in German sportswear giant Adidas fell almost three per cent as it warned that tariffs would increase prices for its products in the United States.

British pharmaceutical giant AstraZeneca said it has begun to move some of its European production to the United States, ahead of Trump’s possible tariffs on the sector.

AstraZeneca shares were down 0.5 per cent in London though the company reported a 30 per cent increase in net profit to $2.9 billion.

In Asia, Hong Kong stocks advanced while Shanghai dipped after US Treasury Secretary Scott Bessent told CNBC that negotiations with China were ongoing but said that the ball was in Beijing’s court.

Seoul rose as automakers Hyundai and Kia were boosted by the auto tariff news.

Tokyo was closed for a holiday.

Investors are also awaiting earnings from US tech titans this week, including Amazon, Apple, Meta and Microsoft.

On currency markets, Canada’s dollar held steady against its US counterpart as Prime Minister Mark Carney’s Liberal Party won Canada’s election.

Oil prices fell further on Tuesday on fears that global trade tensions may lead to a slowdown in economic activity that would hamper energy demand.

– Key figures at 1340 GMT –
New York – Dow: UP 0.4 percent at 40,368.60 points

New York – S&P 500: DOWN 0.2 percent at 5,519.84

New York – Nasdaq: DOWN 0.4 percent at 17,300.95

London – FTSE 100: UP 0.4 percent at 8,451.16

Paris – CAC 40: DOWN 0.3 percent at 7,551.48

Frankfurt – DAX: UP 0.6 percent at 22,396.18

Hong Kong – Hang Seng Index: UP 0.2 percent at 22,008.11 (close)

Shanghai – Composite: DOWN 0.1 percent at 3,286.65 (close)

Tokyo – Nikkei 225: Closed for a holiday

Euro/dollar: DOWN at $1.1397 from $1.1424 on Monday

Pound/dollar: DOWN at $1.3408 from $1.3441

Dollar/yen: UP at 142.18 yen from 142.04 yen

Euro/pound: UP at 85.03 pence from 84.99 pence

West Texas Intermediate: DOWN 1.6 percent at $61.06 per barrel

Brent North Sea Crude: DOWN 1.6 percent at $63.77 per barrel