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Trump administration has said it will appeal the court

ruling

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US dollar, banks, luxury, chipmakers lead gains

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Analysts say even a pause provides valuable time

By Samuel Indyk and Sarah Marsh

May 29 (Reuters) - A U.S. trade court ruling that

blocked most of President Donald Trump's tariffs and found he

had overstepped his authority triggered some relief on financial

markets on Thursday, while adding to the uncertainties weighing

on the global economy.

Among the United States' big trading partners, in the throes

of negotiation with the Trump administration, Germany said it

could not comment, as did the European Commission.

"We ask for your understanding that we cannot comment on the

legal proceedings in the U.S., as they are still ongoing," a

spokesperson for Germany's economy ministry said.

"We continue to hope that a mutually beneficial solution can

be reached in the negotiations between the EU Commission and the

U.S. government."

Winners on financial markets included chip makers, banks,

luxury stocks and auto industry, all hit hard by tariff-led

disruptions.

The U.S. dollar rallied 0.2% against the yen and

0.3% against the Swiss franc as currencies and assets

that have benefited from the tariff-induced market turmoil fell.

Wall Street stock index futures rose by more than 1.5%

The trade court ruling on Wednesday dealt a blow to Trump's

central policy of using tariffs to wring concessions from

trading partners.

His administration immediately said it will appeal and

analysts said investors will remain cautious as the White House

explores its legal avenues.

Following a market revolt after Trump's major tariff

announcement on April 2, the U.S. president paused most import

duties for 90 days and said he would hammer out bilateral deals

with trade partners.

But apart from a pact with Britain this month, agreements

remain elusive and the court's stay on the tariffs may dissuade

countries like Japan from rushing into deals, analysts said.

Another pause in Trump's stop-start trade policy could be

helpful to opponents of his tariffs and to traders who relish

volatility.

"Assuming that an appeal does not succeed in the next few

days, the main win is time to prepare, and also a cap on the

breadth of tariffs - which can't exceed 15% for the time being,"

George Lagarias, chief economist at Forvis Mazars international

advisers, said.

TURMOIL

Trump's trade war has shaken makers of everything from

luxury handbags and trainers to household appliances and cars as

the price of raw materials has risen, supply chains have been

disrupted and company strategies redrafted.

Drinks company Diageo ( DEO ), automakers General Motors ( GM )

and Ford are among those who have abandoned

forecasts for the year ahead.

Non-U.S. companies including Honda ( HMC ), Campari

and pharmaceutical companies Roche and

Novartis have said they are considering moving

operations or expanding their U.S. presence to mitigate the

impact of tariffs.

As markets assessed the latest twist in the trade upheaval,

European export-sensitive sectors, such as autos and luxury

stocks, were among leading gainers on Thursday.

The pan-continental STOXX 600 was up 0.4%, while

France's CAC 40, which has a heavy weighting of luxury

and bank stocks, rose 0.8%.

Overall sentiment was also lifted by strong results late on

Wednesday from AI bellwether Nvidia ( NVDA ).

Spot gold declined for a fourth straight day, while

U.S. Treasury yields rose. Bond yields move

inversely with prices.

But the gains in shares may be short-lived, analysts said,

with those who relish risk making the most of them.

"I think we are in a period of higher volatility - we will

get some more spikes on the way, I think. But volatility is the

friend of the active investors," Kevin Barker, global head of

active equities, UBS Asset Management, told a media briefing.