Sept 1 (Reuters) - A look at the day ahead in European

and global markets from Wayne Cole.

It's been a resistant start to September with much of Asia

in the red and Wall Street on holiday, leaving S&P 500 futures

flat in what is typically a bad month for the market. European

share futures have hardly budged, but China's market remains

well supported by a tide of liquidity looking for a home in a

low-yield world.

Chinese blue chips climbed more than 10% last

month, helped in part by talk Beijing was pushing firms to

develop a home-grown alternative to Nvidia's ( NVDA ) AI chips.

Hong Kong shares of Alibaba ( BABA ) jumped almost 19% in

the biggest one-day rise since early 2022 on optimism over its

cloud business. There were also reports DeepSeek had opted for

Huawei chips to train some of its AI models.

That may have sparked some profit taking in Japanese chip

group Advantest ( ADTTF ), which dived 9.1%, giving back some of

the near-50% gains made in the past three months. AI-focused

investor SoftBank Group also dropped 6% and contributed

to a 2% loss for the Nikkei.

Chinese investors might also be encouraged that President

Trump is running into legal challenges to his tariff policies.

While the levies remain in place pending an assumed appeal to

the Supreme Court sometime in October, the ruling could lead

trading partners to drag their feet on negotiations with the

White House.

Indeed, of the trade "deals" supposedly already agreed, few

if any have been signed or ratified - more concepts of a plan

for a framework of a deal. Talks with Japan have hit a stumbling

block over rice, while negotiations with South Korea are bogged

down despite the recent leaders' meeting.

Markets seem to be assuming the conservative majority on the

Supreme Court will find a way for trump to keep the tariffs in

place. Were the judges to actually uphold the appeals court

ruling, then presumably many of the deals would be defunct and

Trump's leverage for new ones greatly diminished.

Treasury would also have to repay the more than $100 billion

collected, which, since it is likely being spent, will have to

be borrowed. Apart from it being a logistical nightmare, the

money would go to the importers who paid the tariffs, not the

American consumers who paid higher prices.

Would the importers roll back any price hikes to pre-tariff

levels, or keep them up to fatten margins? And what happens to

the $3 trillion or more the taxes were supposed to bring in to

cover tax cuts?

Who knew trade law could be so much fun?

Key developments that could influence markets on Monday:

- European PMIs for August, EU unemployment for July

- speech by ECB President Christine Lagarde. Appearances by

ECB Board members Piero Cipollone and Isabel Schnabel

(Editing by Sam Holmes)