Global stock markets reacted to a ruling by the U.S. Supreme Court deeming American “reciprocal” tariffs illegal. European markets, already trending upward, saw gains accelerate following the announcement. By 15:30 GMT, the Paris CAC 40 index jumped 1.20%, reaching a new intraday record of 8529.00 points, surpassing its previous peak from Wednesday.
Market Response
The London Stock Exchange rose 0.62%, Milan gained 1.31%, and Frankfurt increased 0.61%. According to Alexandre Baradez, companies with a significant export share are experiencing growth. European luxury groups, for whom the United States is a key market, saw substantial increases: LVMH rose 4.5%, Kering 1.43%, and Hermès 3.38% in Paris. Salvatore Ferragamo in Milan increased by 5.08%, and Burberry in London gained 4.38%.
In New York, the S&P 500 index edged up 0.19% around 15:30 GMT. The technology-heavy Nasdaq gained 0.32%, even as the Dow Jones, a historically industrial index, saw a slight increase of 0.11%.
The decision comes after the U.S. Supreme Court ruled against the Trump administration’s trade policies. The administration may attempt to implement new tariffs under other existing laws.
Frequently Asked Questions
What happened with the tariffs?
The U.S. Supreme Court ruled the American “reciprocal” tariffs illegal.
Which markets saw gains?
European markets, including Paris, London, Milan, and Frankfurt, saw gains following the announcement. Gains were also reported in New York, though more modest.
Which companies benefited?
Companies with a significant export share, particularly European luxury groups like LVMH, Kering, Hermès, Salvatore Ferragamo, and Burberry, experienced increases in their stock values.
How will these developments affect international trade in the coming months?
