Stocks of Barclays and HSBC experience a surge following Trump's legal setback
Shares in FTSE 100 banking titans surged on Thursday following a legal setback for President Donald Trump's tariff policies.
Barclays and HSBC saw gains of over one percent, trading at 328.05p and 874.50p respectively, while Standard Chartered experienced a nearly two percent rise to 1,158.00p.
This optimistic market response followed a decision by the U.S. Court of International Trade, which deemed Trump's broad tariffs invalid due to exceeding the President's authority under the International Emergency Economic Powers Act (IEEPA).
The ruling, brought upon by cases presented by American businesses and a few states, concluded that Trump's controversial 'Liberation Day' tariffs went beyond the powers granted to the President to regulate imports via tariffs.
The judgment serves to hamper Trump's trade agenda and complicate his power to disrupt global trade. Despite an initial surge, the FTSE 100 soon reversed its gains, trading flat as markets digested the news.
When Trump initially announced his tariffs, they had a significant impact on the banking sector. For instance, Standard Chartered, one of Asia's largest international banks, fell by over seven percent, making it the FTSE 100's top decliner. HSBC and Barclays also experienced drops of over five percent and more than four percent respectively.
However, Trump's retreat from his trade offensive inspired a recovery for London markets, despite continued negative effects on Asian geographies, which have impacted the shares of all three banks. Despite its year-high of 1,269p, Standard Chartered still trades significantly below that mark. HSBC has tumbled from its all-time high of 942.50p reached in March, but Barclays has managed to climb past its pre-tariff high of 309.25p, gaining over 24 percent in the last six months.
While the precise share price effects for these specific banks due to the court rulings or tariff developments remain unconfirmed, broader market sentiment indicates international exposure stocks have been negatively affected amid ongoing tariff tensions.
- The victory in court against Trump's tariff policies has influenced the economy, with stocks in FTSE 100 banking giants such as Barclays, HSBC, and Standard Chartered experiencing gains.
- The banking sector, including key players like Barclays, HSBC, and Standard Chartered, was initially negatively impacted by Trump's tariff announcements, as shown by significant drops in their stocks.
- The effects of the court rulings and tariff developments on the specific shares of banks like Barclays, HSBC, and Standard Chartered are yet to be confirmed, but the broader market sentiment suggests international exposure stocks have been negatively impacted amid ongoing tariff tensions.
- The tariff problems faced by Trump have the potential to affect the finance, business, and banking-and-insurance industries, as demonstrated by the market response to his tariff policies.
