Source: Sharecast
The FTSE 100 was called to open around 15 points higher.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "What began as early trade optimism yesterday - triggered by the US Court of International Trade deeming Trump’s tariffs illegal - turned out to be too good to be true. Things quickly got messy when Trump appealed the decision, prompting the US Court of Appeals to pause the ruling in order to review arguments from both sides. Meanwhile, a separate federal court issued a similar but more limited decision on the tariffs. As a result, the initial ruling that had cancelled the tariffs is now effectively on hold.
"As such, uncertainty has surged - no one is quite sure what’s legal and what’s not anymore. Some reports suggest the Trump administration could still find legal grounds to uphold its tariff policies. One of the most cited tools is Section 232 of the Trade Expansion Act of 1962, which allows for industry-specific tariffs on cars, steel, and aluminium on national security grounds. Other potential avenues include Section 301, which deals with unfair trade practices, and Section 122, apparently designed to manage trade deficits and defend the US dollar. In short, there are a lot of legal levers in the air - and most of us aren’t lawyers.
"But you don’t need to be a lawyer to smell the thick uncertainty about what the US government might do next - and how trade partners will respond. If tariffs are ultimately found to be unlawful, the willingness of partners to make concessions during trade talks may shrink - not exactly ideal, especially given the critical window for negotiations. And whether there’ll be legal clarity ahead of the June 9th deadline for European trade negotiations - which could end with 50% tariffs, or not - is anyone’s guess."
In corporate news, it was announced that Japan’s Dai-ichi Life is to take a stake in investment manager M&G after the two firms agreed a long-term strategic partnership.
Under the terms of the deal, the blue chip will become Dai-chi’s preferred asset management partner in Europe, while the mutual insurer will acquire a shareholding of around 15% in M&G.
The partnership is expected to generate at least $6bn in new business flows into funds managed by M&G over the next five years, the British firm said.
Elsewhere, business park owner Sirius Real Estate said it had agreed €43m of deals in Germany.
The company said it had agreed to purchase a multi-let business park for €12.67m and also the sale a business park for €30m.