Stocks rise on bank earnings and auto tariff relief hopes

Some stability has returned to markets after last week's rollercoaster ride over Trump's stop-start tariff announcements

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Stock markets rose Tuesday as investors digested strong bank earnings and shares in several auto giants surged over hopes of tariffs relief from US President Donald Trump.

Some stability has returned to markets after last week's roller-coaster ride over Trump's stopstart tariff announcements, but uncertainty remains over speculation of new levies on highend technology and pharmaceuticals.

"While financial markets have steadied, with many looking as if they are consolidating at current levels, this feels as if it is the calm before the storm," said David Morrison, senior analyst at financial services firm Trade Nation.

"Markets remain skittish, and investors feel safer sitting on their hands for now, hoping that last week's worrying dislocations revert back to normal," he said.

Wall Street's main indexes were in the green in late morning deals as investors also kept an eye on corporate earnings.

Shares in Bank of America and Citigroup climbed after the financial giants posted solid earnings reports.

Boeing slumped as Trump said China "reneged" on a major deal with the US aviation giant, after Bloomberg reported that Beijing ordered airlines not to take further deliveries from the company amid an escalating trade war. Shares in European rival Airbus rose.

European indices closed higher, with London and Frankfurt gaining 1.4 per cent each.