Dollar, stocks and oil rally as US court deems Trump's tariffs illegal
US dollar, stock futures and oil prices rallied following the decision of a US court to block President Donald Trump's 'Liberation Day' import tariffs from taking effect.
On Wednesday, the Manhattan-based Court of International Trade said the US Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president's emergency powers to safeguard the US economy. It said Trump overstepped his authority by imposing across-the-board tariffs on imports from nations that sell more to the US than they buy.
The Trump administration has filed an appeal against the ruling.
Contracts for the S&P 500 and Nasdaq 100 gained 1.4 per cent and 1.7 per cent, respectively.
Asian markets were also reacting favourably to the news. At 0630 UAE time, Japan's Nikkei 225 was up 1.68 per cent 38,355, while Hang Seng had improved 0.42 per cent to 23,356. South Korea's KOSPI gained 1.56 per cent to a nine-month high of 2711.85. India's GIFT NIFTY was up 106.5 points, or 0.43 per cent, to 24,844.
EUROSTOXX 50 futures was up by 1.1 per cent, and FTSE futures gained 0.7 per cent.
Dollar surged against the euro, yen and Swiss franc. It rose 0.6 per cent against the yen to 145.72 and 0.65 per cent against the franc to 0.8326. The euro slid 0.5 per cent to US$1.1232, while pound sterling fell 0.2 per cent to US$1.3432.
The dollar index, which measures the US currency against six major peers, climbed back above 100 for the first time in a week and was last at 100.40.
Dollar slipped nearly 8 per cent this year as Trump's plans sent jitters across the market and led to investors pulling out their money from the US.
Meanwhile, brent crude futures climbed 81 cents, or 1.25 per cent, to US$65.71 a barrel. US West Texas Intermediate crude advanced by 83 cents, or 1.34 per cent, to US$62.62 a barrel.
Experts have warned that the rise could be short-lived, amidst concerns of potential new sanctions on Russian crude, and a possible decision by the Organisation of the Petroleum Exporting Countries (OPEC+) to hike its oil production in July.
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