FTSE 100 LIVE: European stocks rise despite appeals court temporarily reinstating Trump tariffs

Yahoo

3 days ago

The FTSE 100 (^FTSE) and European markets were higher on Friday, despite stocks in Asia slipping overnight on news that Donald Trump's tariffs have been temporarily reinstated.
On Wednesday night, the US Court of International Trade blocked most of the president's sweeping trade levies, however, an appeals court has agreed to a pause in the decision.
In its appeal on Thursday, the Trump administration said the decision issued by the trade court a day earlier had improperly second-guessed the president and threatened to unravel months of hard-fought trade negotiations.
"The political branches, not courts, make foreign policy and chart economic policy," it said in the filing.
The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration's request for a temporary administrative stay. The administration must submit its briefings by 9 June, after which the court will determine the next steps.
The US dollar has been unsteady on the back of the news, and is now heading for its fifth consecutive monthly decline as investors brace for more uncertainty around trade.
London's benchmark index (^FTSE) was 0.6% higher in early trade
Germany's DAX (^GDAXI) rose 0.5% and the CAC (^FCHI) in Paris headed 0.1% into the green
The pan-European STOXX 600 (^STOXX) was up 0.4%
Wall Street is set for a muted start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in marginally in the red.
The pound was 0.1% down against the US dollar (GBPUSD=X) at 1.3477
Follow along for live updates throughout the day:
The Federal Reserve said that Jerome Powell met with Donald Trump Thursday "at the president's invitation," and the White House said the president told the central bank boss that he is making a mistake by not lowering rates.
The face-to-face encounter follows months of Powell criticism from Trump and pressure on the Fed to ease monetary policy.
The Fed said in a statement that Powell met with the president to discuss "economic developments including for growth, employment, and inflation."
Powell, according to the Fed, "did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook."
The chair said he and his colleagues on the Fed's rate-setting committee will make decisions about monetary policy "based solely on careful, objective, and non-political analysis," the Fed added in its statement.
The White House confirmed the Powell meeting, with press secretary Karoline Leavitt telling reporters that the Fed's summary was correct but noting that the president pushed Powell to lower rates.
"The president did say that he believes the Fed chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries," she said, adding Trump has been very vocal about his views publicly as well.
Stocks in Asia were lower overnight as an appeals court has agreed to a temporary pause in the decision.
The Nikkei (^N225) fell 1.2% on the day in Japan, while the Hang Seng (^HSI) fell 1.4% in Hong Kong.
The Shanghai Composite (000001.SS) was 0.5% down by the end of the session following comments by Treasury Secretary Bessent that trade talks with China are 'a bit stalled'.
In terms of local economic data releases, there was the Tokyo CPI for May in Japan overnight, which beat Bloomberg consensus on both the core measure (3.6% versus 3.5% expected) as well as core-core (3.3% vs 3.2%).
April retail sales and industrial production for the economy also beat.
The dollar is down 0.27% against the yen this morning and UST yields are up 0.4bps on the 2-year and are flat on the 10-year. The Japanese 10-year yield is down 1.5bps.
Across the pond, the S&P 500 (^GSPC) ended 0.4% higher on the day, and the tech-heavy Nasdaq (^IXIC) was up 0.4%. The Dow Jones (^DJI) also gained 0.3%.
Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy.
To the day ahead we have data releases including the May CPI releases from Germany and Italy, along with US PCE inflation for April, the University of Michigan's final consumer sentiment index for May, and Canada's Q1 GDP.
Otherwise from central banks, we'll hear from the Fed's Daly and Goolsbee, and the ECB's Muller, Panetta and Vujcic.
Here's a snapshot of what's on the agenda:
7am: Nationwide House Price Index
1pm: German inflation data
1:30pm: US PCE (Inflation measure)
1:30pm: US Personal Spending, Personal Income
3pm: University of Michigan's consumer sentiment surveyThe Federal Reserve said that Jerome Powell met with Donald Trump Thursday "at the president's invitation," and the White House said the president told the central bank boss that he is making a mistake by not lowering rates.
The face-to-face encounter follows months of Powell criticism from Trump and pressure on the Fed to ease monetary policy.
The Fed said in a statement that Powell met with the president to discuss "economic developments including for growth, employment, and inflation."
Powell, according to the Fed, "did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook."
The chair said he and his colleagues on the Fed's rate-setting committee will make decisions about monetary policy "based solely on careful, objective, and non-political analysis," the Fed added in its statement.
The White House confirmed the Powell meeting, with press secretary Karoline Leavitt telling reporters that the Fed's summary was correct but noting that the president pushed Powell to lower rates.
"The president did say that he believes the Fed chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries," she said, adding Trump has been very vocal about his views publicly as well.
Stocks in Asia were lower overnight as an appeals court has agreed to a temporary pause in the decision.
The Nikkei (^N225) fell 1.2% on the day in Japan, while the Hang Seng (^HSI) fell 1.4% in Hong Kong.
The Shanghai Composite (000001.SS) was 0.5% down by the end of the session following comments by Treasury Secretary Bessent that trade talks with China are 'a bit stalled'.
In terms of local economic data releases, there was the Tokyo CPI for May in Japan overnight, which beat Bloomberg consensus on both the core measure (3.6% versus 3.5% expected) as well as core-core (3.3% vs 3.2%).
April retail sales and industrial production for the economy also beat.
The dollar is down 0.27% against the yen this morning and UST yields are up 0.4bps on the 2-year and are flat on the 10-year. The Japanese 10-year yield is down 1.5bps.
Across the pond, the S&P 500 (^GSPC) ended 0.4% higher on the day, and the tech-heavy Nasdaq (^IXIC) was up 0.4%. The Dow Jones (^DJI) also gained 0.3%.
Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy.
To the day ahead we have data releases including the May CPI releases from Germany and Italy, along with US PCE inflation for April, the University of Michigan's final consumer sentiment index for May, and Canada's Q1 GDP.
Otherwise from central banks, we'll hear from the Fed's Daly and Goolsbee, and the ECB's Muller, Panetta and Vujcic.
Here's a snapshot of what's on the agenda:
7am: Nationwide House Price Index
1pm: German inflation data
1:30pm: US PCE (Inflation measure)
1:30pm: US Personal Spending, Personal Income
3pm: University of Michigan's consumer sentiment survey