Market Commentary: Thursday 29th May

Risk assets rallied overnight after the vast majority of Trump’s global tariffs were deemed illegal and blocked by the US Trade Court. The court has given the administration 10 days to “effectuate” its order. The initial White House response pushed back, stating, “It is not for unelected judges to decide how to properly address a national emergency.”

Trump implemented the tariffs using emergency powers, arguing that global trade deficits posed a threat to national security and the US economy—a justification that has long been questioned. Trump’s response to this ruling will now be closely watched.

With this backdrop, oil has rallied, with WTI climbing to $62.89 a barrel on heightened demand expectations, while markets await the upcoming OPEC meeting later this week. Gold (XAU) came under pressure as safe-haven demand weakened.

Nvidia earnings were well received last night, adding to optimism in equity markets. Despite a slowdown in China, demand for chips is expected to grow exponentially. Both Q1 sales and profits slightly beat expectations, and a more positive outlook led to a 5% surge in post-market trading.

Jobless claims are due later today, but most eyes will be on how the US administration responds to the trade ruling.

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