U.S. Markets

Europe autos stocks surge on report China's regulator to halve car purchase tax

LONDON (Reuters) - European car shares surged on Monday and were set for their best day in four months after a Bloomberg report said China’s regulator was planning to cut car purchase tax by 50 percent.

The autos stocks index .SXAP jumped up 3.4 percent by 1024 GMT with German carmakers Daimler, BMW and Volkswagen gaining 4.3 to 4.9 percent.

The index - the worst-performing in Europe this year as trade war and growth fears dampen appetite for cyclical stocks - was set for its best day since July 5.

Bloomberg reported that China’s top economic planning body is proposing cutting the tax on car purchases in a bid to offset the drag on car demand due to trade war and a slowing economy.

Reporting by Helen Reid, Editing by Josephine Mason