Portugal Colonial - Stocks rise after court ruling against US tariffs

Wall Street overcame early losses spurred by data showing weaker-than-expected US growth.

Meanwhile the risk of US military strikes against Iran over its nuclear programme continued to weigh on sentiment, though oil prices retreated from highs.

The strike down of the tariffs may help reduce inflationary pressures.

The Supreme Court decision will likely bring the average tariff rate from 16.8 percent to around 9.5 percent, EY-Parthenon chief economist Gregory Daco told AFP ahead of the ruling.

"The decision removes one of Trump's fastest tools for imposing broad tariffs," said ING bank's chief macro economist, Carsten Brzeski.

But he also warned "this ruling will not bring relief" for long as the Trump administration has been preparing to use other legal tools.

The ruling also raises questions about whether trade deals the US has struck with partners will endure, with the European Union still not having ratified its agreement.

Bret Kenwell, US investment analyst at eToro, said the best-case outcome would be a framework that's clearer and more consistent.

"If that's what emerges, added certainty could be a net positive for risk assets, potentially giving investors room to lean back into a more risk-on posture," he said.

Meanwhile, data showed the US economy grew 1.4 percent in the fourth quarter, well below the 2.5 percent analysts had forecast, while a price index for December rose to 2.9 percent, more than anticipated.

"While GDP growth appears to be cooling rather than rolling over, the headline figure is still a disappointment," said Kenwell.

That data poured cold water on hopes that US growth was holding up and inflation was contained despite Trump's tariffs barrage, and complicated the outlook for more interest rate cuts by the Federal Reserve.

In Europe, a closely watched survey on Friday showed that business activity in the eurozone accelerated in February, indicating that the region's economy is on a more stable footing.

British firms also boosted output in February, according to the purchasing managers' index published by S&P Global.

London's FTSE 100 stock index hit a fresh record high, as did the CAC 40 in Paris.

In Asia, Hong Kong fell as it reopened from a three-day break for the Lunar New Year, and Tokyo was also down.

Oil prices retreated after climbing to six-month highs this week on worries that nuclear talks between the United States and oil-rich Iran might not avert a conflict that could threaten supplies.

Trump had suggested on Thursday that "bad things" would happen if Tehran did not strike a deal within 10 days, which he subsequently extended to 15.

Asked by a reporter on Friday whether he was contemplating a limited military strike, Trump answered: "The most I can say -- I am considering it."

The US has deployed significant military forces to the Middle East region while also pursuing talks with Tehran.

"At its core, this looks like pressure and leverage rather than a prelude to invasion," said City Index market analyst Matt Simpson.

- Key figures at around 1630 GMT -

New York - Dow: UP 0.3 percent at 49,522.70 points

New York - S&P: UP 0.2 percent at 6,877.79

New York - Nasdaq: UP 0.5 percent at 22,805.71

London - FTSE 100: UP 0.6 percent at 10,686.89 (close)

Paris - CAC 40: UP 1.4 percent at 8,515.49 (close)

Frankfurt - DAX: UP 0.9 percent at 25,260.69 (close)

Tokyo - Nikkei 225: DOWN 1.1 percent at 56,825.70 (close)

Hong Kong - Hang Seng Index: DOWN 1.1 percent at 26,413.35 (close)

Shanghai - Composite: Closed for holiday

Euro/dollar: UP at $1.1781 from $1.1767 on Thursday

Pound/dollar: UP at $1.3492 from $1.3458

Euro/pound: DOWN at 87.32 pence from 87.43 pence

Dollar/yen: DOWN at 154.95 yen from 155.07 yen

Brent North Sea Crude: DOWN 0.6 percent at $71.23 per barrel

West Texas Intermediate: DOWN 0.6 percent at $66.03 per barrel

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G.Machado--PC