A US trade court ruling that blocked most of President Donald Trump's tariffs and found he had overstepped his authority has triggered some relief on financial markets, 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 US, as they are still ongoing," a spokesperson for Germany's economy ministry said on Thursday.
"We continue to hope that a mutually beneficial solution can be reached in the negotiations between the EU Commission and the US government."
Winners on financial markets included chipmakers, banks, luxury stocks and the auto industry, all hit hard by tariff-led disruptions.
The US dollar rallied 0.2 per cent against the yen and 0.3 per cent 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 per cent.
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 US 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 earlier in May, 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 per cent for the time being," said George Lagarias, chief economist at international advisers Forvis Mazars.
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 and automakers General Motors and Ford are among those who have abandoned forecasts for the year ahead.
Non-US companies including Honda, Campari and pharmaceutical companies Roche and Novartis have said they are considering moving operations or expanding their US 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.
Overall sentiment was also lifted by strong results late on Wednesday from AI bellwether Nvidia.
Spot gold declined for a fourth straight day, while US 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.