(Bloomberg) -- Stocks in Europe and Asia rose as US President Donald Trump floated a potential pause in auto tariffs, providing further relief to the market after he suspended levies on some consumer electronics.

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Europe’s Stoxx 600 index advanced 0.6%, buoyed by a rally in auto sector names including Stellantis NV and Continental AG. LVMH tumbled more than 7% in Paris after its sales disappointed investors, dragging down shares in other luxury companies. Japanese stocks led gains in Asia, with carmakers such as Toyota Motor Corp. and Honda Motor Co. jumping. US equity futures rose.

Ten-year Treasuries were little changed, continuing to stabilize after last week’s selloff, while a gauge of the dollar steadied after five days of losses.

Markets are consolidating as the exemptions raised hopes there may be room for negotiations after the president’s reciprocal tariffs this month wiped $10 trillion off global equities and spurred a rout in Treasuries. The flip-flops are keeping investors on edge and business leaders including JPMorgan Chase & Co.’s Jamie Dimon have warned that Trump’s effort to remake the global trading order may push the US into a recession.

“Trump’s showing signs of flexibility around his tariff policies, and that’s brought some composure back to the market,” said Yusuke Sakai, a senior trader at T&D Asset Management.

The US also pressed forward with plans to impose tariffs on semiconductor and pharmaceutical imports by initiating trade probes led by the Commerce Department. The moves threaten to broaden the president’s sweeping trade war.

Yields on 10-year Treasuries jumped 50 basis points last week, the most in over two decades, amid concerns among investors that the tariffs may push the US economy into recession. Federal Reserve officials have lowered their outlook for growth and lifted forecasts for inflation.

US Treasury Secretary Scott Bessent on Monday played down the recent selloff in the bond market, rejecting speculation that foreign nations were dumping their holdings, while flagging that his department has tools to address dislocation if needed. Bessent also dismissed concerns that the simultaneous decline in Treasuries and the dollar last week signified that the US was losing its haven status.

Deutsche Bank Global CIO Christian Nolting said there are opportunities to buy stocks, should the S&P 500 index dip below 5,000 points. The bank has reduced US equities “a little bit” ahead of the tariffs announcement, but “we have also told clients not to panic” due to volatility, he said.