Markets cheer court ruling to block Trump tariffs

SINGORE, - U.S. stock futures jumped and the dollar gained against safe-haven peers including the yen and Swiss franc on Thursday, after a U.S. federal court blocked President Donald Trump's "Liberation Day" tariffs from going into effect.

The Trump administration has appealed the ruling.

S&P 500 E-mini futures climbed 1.5% and the U.S. currency jumped 0.7% to 145.83 yen and 0.8% to 0.8339 Swiss franc.

Here are some quotes from market analysts:

MATT SIMPSON, SENIOR MARKET ANALYST, CITY INDEX, BRISBANE

"It seems inevitable the Supreme Court will be ordered to weigh in on this one, which makes today’s news more of a speedbump than a full-drawn conclusion. But for now, investors get a breather from the economic uncertainty they love to loathe."

HIROFUMI SUZUKI, CHIEF FX STRATEGIST, SMBC, TOKYO

"It's certainly a blow to the Trump administration. However, it's likely that the administration will proceed with appeals and other procedures in federal court. So, this block doesn't mean that policies regarding tariffs will completely stop.

"On the other hand, this is a domestic matter for the U.S., and I think that tariff negotiations will continue.

"In the financial markets, there's an initial reaction of a stronger dollar and weaker yen. However, considering judicial processes like appeals, I don't expect a continuous rise in the dollar."

SEAN CALLOW, SENIOR ANALYST AT ITC MARKETS, SYDNEY

"The kneejerk response of markets to the CIT ruling is intriguing - rather than taking it as simple risk-on news that should benefit the likes of AUD and NZD, the U.S. dollar is the main beneficiary.

"It appears as though while there must be significant caution over the ruling being overturned by higher courts, for now the weight of money is being placed on the possibility that U.S. courts prevent the White House from self-imposed economic damage, brightening U.S. growth prospects and the USD."

RAY ATTRILL, HEAD OF FX STRATEGY, NAB, SYDNEY

"We’re just trying to work out what it might mean, but obviously the market is doing a kneejerk reaction so I guess it's reversing a lot of the moves that we've seen… you know all the direction of change has been opposite to what we have seen since Liberation Day, but it's not at all clear what this means.

"The assumption is that the tariffs that have been announced and are in place will stay in place… Our assumption is President Trump will appeal this trade court's decision and he has the right to appeal... And then it will be up to the federal court and what happens there? I have no idea. So this may be an absolute storm in a teacup or potentially something more significant.

"I think it's way premature basically to say that this has the potential to reverse a lot of the moves that we've seen in the last couple of months."

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