Stocks in the banking sector surge following a court decision regarding Trump's import taxes.
Major banks and financial institutions experienced a boost in share prices on Thursday, following a U.S. court ruling that invalidated President Trump's broad tariffs.
The Court of International Trade decided that an emergency law invoked by the White House did not grant the president the unilateral authority to impose tariffs on goods from virtually every country. This ruling marks a significant setback for one of the key components of Trump's economic policies.
Shortly after the verdict, the Trump administration announced its intention to file an appeal. As of now, it remains uncertain how the legal matter will unfold.
On Thursday, Barclays shares rose by 1.27%, or 4.10p, to close at 328.05p. HSBC shares, on the other hand, saw a 1.46% increase, or 12.60p, ending the day at 878.00p. Both of these companies have recently experienced significant growth, with HSBC's shares climbing 28% over the past year and Barclays' growing by over 40%.
Other institutions that saw an increase in share prices include Prudential, which ascended 1.66%, or 13.80p, to 847.00p, and Standard Chartered, which rose by 2.68%, or 30.50p, to 1,170.50p.
Richard Hunter, head of markets at Interactive Investor, commented on the situation: "The unanimous ruling sets the scene for a potential tariff reversal. If so, companies with exposure to China, such as Standard Chartered and Prudential, would particularly benefit, as would those with a US interest like Barclays."
Other banks, like Lloyds and NatWest, also experienced growth, although their rise was more modest compared to the financial institutions mentioned above. These two firms, however, are less affected by tariffs being imposed on the UK, given that a UK-US trade deal has already been established.
In response to the court's ruling, Scott Gallacher, a director at Rowley Turton, stated, "The court's ruling to block and unwind Trump's tariffs will hopefully undo much of the damage his trade war did to markets and investment values."
The possible reversal of tariffs could lead to a recovery for London markets, although the focus on tariffs on Asian goods and services remains a concern for certain banks. It remains to be seen how this recent court decision could affect the ongoing trade tensions between the U.S. and its trade partners.
- The boost in share prices of major banks and financial institutions, such as Barclays, HSBC, Prudential, and Standard Chartered, was observed on Thursday, following a U.S. court ruling that invalidated President Trump's broad tariffs.
- Richard Hunter, head of markets at Interactive Investor, suggests that companies with exposure to China, like Standard Chartered and Prudential, would particularly benefit from a potential tariff reversal, as would those with a US interest like Barclays.
- Scott Gallacher, a director at Rowley Turton, stated that the court's ruling to block and unwind Trump's tariffs could potentially undo much of the damage his trade war did to markets and investment values.
- The possible reversal of tariffs could lead to a recovery for London markets, although the focus on tariffs on Asian goods and services remains a concern for certain banks, indicating a complex and ongoing situation in the global business and stock-market landscape.
