Updates to reflect move in currencies, updates prices

By Harry Robertson and Wayne Cole

LONDON/SYDNEY, Feb 23 (Reuters) - Wall Street futures and European stocks dropped while gold rallied on Monday as confusion over U.S. trade policy hit markets, after President Donald Trump announced a new 15% tariff following the Supreme Court's ruling against his global levies.

Currency markets swung as investors tried to work out the implications for the world's major economies, while shares in Hong Kong jumped on the assessment that U.S. tariffs on China could fall.

The U.S. Supreme Court struck down Trump's emergency tariffs on Friday, leading the president to quickly announce a new 10% rate on the rest of the world, only to then lift it to 15% on Saturday.

"The tariff landscape is now more uncertain than before, uncertainty is not good news for any economy or market," said Rodrigo Catril, a senior FX strategist at NAB.

"Unless common sense prevails, we could be entering a circular process where new tariffs are announced, then potentially overturned, only for new tariffs to be announced, and we do the dance again."

S&P 500 futures ESc1 fell 0.54% and Nasdaq futures NQc1 were down 0.59%, after earlier dipping as much as 1%.

U.S. stock markets are also set to be tested later this week by earnings from Nvidia NVDA.O, which are likely to cause waves given that the chip designer makes up almost 8% of the S&P 500 index.

Gold climbed 1.2% to $5,163 an ounce XAU= and silver rose 2.8% to around $87 per ounce XAG=.

Europe's STOXX 600 index .STOXX fell 0.35%, with Germany's DAX .GDAXI down 0.62% but Britain's FTSE 100 .FTSE slightly higher.

"Trump is Trump - he won’t abandon his America-first mantra and will keep pushing the limits as long as he’s in power," said Tomas Hildebrandt, senior portfolio manager at Evli in Helsinki.

"(There) may be some relief for some European exporters, but the tough anti-Europe attitude of the Trump administration isn’t fading away."

AVERAGE TARIFF RATE DROPS

It was unclear when the new tariffs would be imposed, what might be excluded and whether every country would face a 15% rate. Some, including the UK and Australia, had 10% tariff rates under the former rules, while many countries in Asia had higher rates.

The Yale Budget Lab said the overall average effective tariff rate would stand at 13.7% after Trump's announcement on Saturday, down from 16% - the highest since 1936 - before the Supreme Court's ruling.

It added that it expected the 15% tariffs would expire after 150 days, following the Trade Act of 1974, under which they will be set. If so, the average rate would fall to 9.1%.

The dollar fell in Asian and early European trading but was last flat as investors grappled with the policy uncertainty.

The safe-haven Swiss franc CHF=EBS and Japanese yen JPY=EBS both rallied before slipping back. The euro was little changed against the dollar EUR=EBS at $1.1778.

Asian markets were mixed but stocks broadly rose, with the MSCI Asia index which excludes Japan up 0.78% .MIAPJ0000PUS.

Hong Kong's Hang Seng index rallied 2.53% partly due to expectations that China will face lower tariffs after the ruling. Goldman Sachs analysts noted China could see a 6.6 percentage point fall in its tariff rate.

Japan's Nikkei .N225 was shut for a holiday but futures NKc1 fell 0.38%.

Brent crude oil prices LCOc1 rose 0.15% to $71.78 a barrel, adding to the gains made last week when Trump said the U.S. could strike Iran amid a large-scale buildup of forces in the region. Further U.S.-Iran talks are scheduled for Thursday.O/R

Government bonds rose slightly in the United States but were little changed in Europe, with the 10-year U.S. Treasury yield down a basis point to 4.075% US10YT=RR. Yields move inversely to prices.

(Reporting by Harry Robertson in London and Wayne Cole in Sydney; Additional reporting by Danilo Masoni in London; Editing by Lincoln Feast and Susan Fenton)

((harry.robertson@thomsonreuters.com; wayne.cole@thomsonreuters.com))