Europe has expressed relief after US President Donald Trump and the European Commission chief agreed to tackle their trade row, although France cautioned that any deal must be limited and benefit both sides.
Reaction on financial markets on Thursday ranged from enthusiasm on stock exchanges to scepticism among currency investors.
After meeting European Commission President Jean-Claude Juncker at the White House on Wednesday, Trump agreed to refrain from imposing car tariffs while the EU and the US start talks on cutting other trade barriers.
Talks would seek to "resolve" US tariffs on steel and aluminium and Europe's retaliatory duties, a step back from Trump's import protections for US metal producers.
German Economy Minister Peter Altmaier, a conservative hailed the talks as a "breakthrough" that could avoid a trade war, although Germany's DIHK chambers of Commerce noted that US auto tariffs were not totally off the table.
European stocks rose on Thursday, with shares in carmakers Fiat, Porsche, Volkswagen and BMW all up by between two and five per cent.
Reaction from Social Democrat members of the German coalition government was more measured. "This is not yet the result we are aiming for but it has made a positive result in the whole discussion ...," Foreign Minister Heiko Maas said in Seoul.
European Central Bank President Mario Draghi called the Washington meeting a good sign. "It shows that there is a willingness to discuss trade issues in a multilateral framework again," he said, but added: "It would be difficult for us to go beyond that because we really don't know the substance of it."
The response from France was also cautious. Finance Minister Bruno Le Maire welcomed the discussions with Washington but said he does not want to enter into a wide-ranging negotiation.
"Each side, the Europeans and the Americans, must find something in these discussions. Any trade deal must be based on reciprocity," he said.
