Markets leave after a court decision on customary trump duties

The court’s decision motivated growth in markets: Japanese Nikkei rose 1.7%, South Korea Kospi – of 1.8%. European futures also added about 1%.

Stock markets in Europe and the United States grew on Thursday after the US Federal Court blocked Donald Trump’s order from the introduction of new duties to import. Reuters reported this on Thursday, May 29.

The court admitted that President Trump had exceeded his powers, introducing duties on April 2 to import from US partner countries. The White House immediately appealed and announced a possible appeal to the Supreme Court.

“This decision has provided temporary relief in the market, although the uncertainty about the administration’s reaction remains,” said James Leong Grasshopper Asia, general director. “Until the Supreme Court has a final decision, the markets will remain sensitive to the news,” he added.

Goldman Sachs analysts emphasized that the court’s decision does not prohibit the roles in the sector, and the Trump administration has other legal mechanisms for the introduction of tariffs.

“This is a serious blow to the administration’s tariff policy, though the final impact on the major trade partners of the United States may be limited,” said the Goldman Sachs Analytical Note.

However, against the background of the news:

• The Stoxx 600 index increased by 0.3%;

• Futures in the S&P 500 jump 1.6%, in Nasdaq – by 2%;

• Japanese Nikkei and South Korea Kospi grew by 1.9%;

• Chinese chips added 0.6%.

At the same time, the British FTSE 100 reduced by 0.1%.

“This may indicate that countries that have already graduated with trade agreements with the United States, such as Great Britain, may be temporarily in a less unique situation,” commented Kathleen Brooks, director of the XTB research director.

In this regard, the dollar was strengthened at 145.86 yen and 0.8327 Franc, and the Euro dropped to $ 1.1245. The yield of ten -a United States bond also jumped – up to 4.51%.

It is noteworthy that the US Court of International court decided that President Donald Trump had exceeded the authority, and recognized the duties introduced to him illegally.

Earlier, Trump announced 50% of the role of goods from the EU, stating “our negotiations with them will not lead to any.” The next day, he said “not looking for transactions in the EU” and that he now plans to “play the game as much as he can.”

However, on May 25, he said he would postpone 50% of tariffs for all imports from the European Union to July to provide more time for trade negotiations.

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