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European equities advanced on Thursday, buoyed by a U.S. trade court’s ruling to block President Donald Trump’s sweeping tariff proposals, which lifted market sentiment and eased investor concerns over an escalating trade conflict.
The pan-European STOXX 600 index edged 0.2% higher as of 08:43 GMT, while Germany’s DAX 40 gained 0.4%, hovering near record highs. Most regional markets traded in positive territory, although persistent trade uncertainties limited broader gains.
The U.S. Court of International Trade ruled that Trump had overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners on April 2. The decision provided temporary relief to global markets, but the Trump administration swiftly appealed, questioning the court’s authority and adding a layer of uncertainty to the legal process.
On Wall Street, stock index futures rallied over 1.5%, reflecting optimism that the court’s decision could defuse some of the trade tensions that have roiled markets in recent months.
The U.S. dollar, which has struggled this year amid shifting trade policies, strengthened against major peers on Thursday, while European equities saw broad-based gains.
Nvidia (NASDAQ:NVDA) bolstered sentiment after the AI chip giant smashed quarterly sales expectations, with shares jumping 5.3% in premarket trading. The positive read-across for European AI-linked stocks lifted Schneider Electric (EPA:SCHN), ASML (AS:ASML), STMicroelectronics (EPA:STM), and BE Semiconductor Industries (AS:BESI) between 1.6% and 3%. The STOXX Europe 600 Technology Index rose 0.8%.
Luxury stocks also advanced, with Kering (EPA:PRTP), Christian Dior (EPA:DIOR), and Burberry (LON:BRBY) climbing 1.8% to 2%. The region’s luxury sector index added 0.7%, reflecting optimism over continued U.S. demand.
Materials led sectoral gains, rising 0.8%, underpinned by robust copper prices. The STOXX 600 has now gained 4.4% so far in May, as easing trade tensions and upbeat corporate results supported risk appetite.
However, utilities and real estate stocks lagged, falling 1.1% and 0.8% respectively, as defensive sectors lost favour amid improved risk sentiment.
In corporate news, Auto Trader Group (LON:AUTO) tumbled 13.7%, making it the worst performer of the day, after the U.K.’s largest automotive platform missed full-year revenue estimates.
Meanwhile, Swedish radiation therapy equipment maker Elekta (BS:EKTABs) surged 5.9%, extending gains from the previous session and topping the index’s leaderboard.
