Investors have greeted with modest gains on Thursday's opening the decision of the US International Trade Court regarding Trump's tariffs. The court, based in New York, has deemed the vast majority of tariffs announced by the US President as illegal, and this is being timidly felt in European markets, although a greater impact is expected on Wall Street.
This decision by the high court adds to the delay that President Donald Trump announced this week regarding the implementation of 50% tariffs on the European Union. He did so hours after threatening to advance the tariffs to June 1st due to stalled negotiations. Nevertheless, investors' reaction in Europe is quite tepid, perhaps due to fatigue from the back and forth surrounding Trump's tariff proposals, which have not even materialized as initially planned. Central Europe started the day with gains of 0.8% for Germany and France, while the Ibex 35, which initially rose by 0.5%, turned around and is now trading slightly in positive territory.
The companies standing out in this session are those with a greater exposure to the US. This is the case of the pool manufacturer Fluidra, which is up by more than 2.5%, followed by IAG, the high-end perfumery giant Puig, and Grifols and Acerinox, either due to their high presence in the country or because it is understood that this could boost global trade and international travel.
US stock futures point to gains exceeding 1.6% for the S&P 500 and 2% for the tech-heavy Nasdaq after Nvidia reported its quarterly earnings yesterday. This is another factor that will influence Thursday's session, considering that Nvidia is the largest company by market capitalization, with around 3.3 billion dollars.
The semiconductor company surprised investors positively with the market closed on Wednesday. Nvidia earned 18.8 billion dollars in the first fiscal quarter, a 26% increase compared to the same period last year. Revenues rose by 69% year-on-year, reaching 44.1 billion dollars, despite an exceptional provision of 4.5 billion dollars due to the restrictions imposed by the Trump administration on its chip sales in China.
With the good news from the US International Trade Court, investors' purchases are flowing into equities, leading to money exiting the bond market where all benchmarks are trading with yield increases. The German 10-year bond reaches 2.57%, while in the US, the 10-year debt rises to 4.52%, and the 30-year benchmark, which has been closely watched in recent weeks, remains above the 5% level, at 17-year highs.