US court ruling on Trump tariffs lifts European stock markets' spirits
European stocks surged on Thursday after a U.S. trade court ruled against President Donald Trump's proposed tariffs, instilling a risk-on sentiment in global markets.
The continent-wide STOXX 600 index rose 0.4% by 0715 GMT, while regional indexes also traded higher. Germany's DAX 40 climbed 0.5%, inching close to a record high.
In its ruling, the Court of International Trade determined that Trump exceeded his authority by imposing across-the-board duties on imports from U.S. trade partners effective April 2.
Wall Street also benefited from the trade decision, with stock index futures climbing over 1.5% as the court's verdict alleviated trade uncertainties.
AI bellwether Nvidia's strong quarterly sales report in after-hours trading on Wednesday further lifted overall sentiment in European markets.
European technology stocks, with AI-exposed companies like ASML and Schneider Electric each gaining around 3%, led sector gains with a 1.7% rise.
Meanwhile, European automakers, affected by tariff-related pressures, saw their shares climb in early trading. Stellantis shares gained 2.5%, Porsche gained 1%, and Volkswagen added 1.2%.
Luxury stocks also received attention, with Kering, Christian Dior, and Burberry rising between 3% and 3.6%. Investor preference for luxury goods suggests a renewed optimism for consumer spending.
Despite the mostly positive market response, the long-term impact of the tariff situation remains uncertain, as the White House has announced its intention to appeal the court's decision. The looming appeal could reintroduce uncertainty and potential economic strain on U.S.-Europe trade relations.
- The STOXX 600 index's 0.4% rise was influenced by a risk-on sentiment in global markets, driven in part by a U.S. trade court's ruling against proposed tariffs.
- AI stocks gained significant momentum, with European technology stocks rising by 1.7%, led by companies like ASML and Schneider Electric, each up around 3%.
- While automakers saw shares climb in early trading, given tariff-related pressures, the long-term impact of the tariff situation remains uncertain, as the White House has announced its intention to appeal the court's decision.
- Investor interest in luxury goods, as indicated by gains in stocks like Kering, Christian Dior, and Burberry, suggests a renewed optimism for consumer spending in the broader industry of finance and sports.
