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China fears hit auto stocks, but TD Cowen sees an overreaction
With Trump and Xi meeting, the bank says investors may be pricing in too much downside from Chinese car-related risks.
23 September 2026 1 min read 0 views
TD Cowen says the sell-off in automotive stocks on fears tied to China has been excessive. In its view, the market is pricing in scenarios that are much worse than what is actually on the table, just as the Trump-Xi meeting puts trade tensions back in focus.
For European investors, the key issue is the impact on global carmakers and supply chains. The bank says there is, for now, no sign that justifies such heavy selling solely because of Chinese auto-related risk.