London stocks opened higher on Monday, buoyed by news that consumer electronics will be exempt from US tariffs, easing investor concerns after last week’s turmoil.
However, Trump has said over the weekend that new tariffs on semiconductors will be announced ‘over the next week’ and ‘be in place in the not distant future’.
Swissquote’s Ipek Ozkardeskaya commented that the week ‘starts on relief that the US will exempt electronics...from headline tariffs’, but added: ‘Prepare for another week of hectic headlines, uncertainty and high volatility – and thinning holiday volumes into the Easter break won’t help in terms of volatility.’
Also, UK businesses hit by Trump’s tariffs are set to receive extra support as the government announced a new export finance package worth billions of pounds.
Chancellor Rachel Reeves said thousands of businesses would benefit from the move, which will expand UK Export Finance’s support for firms by £20 billion. Up to £10 billion of that support will be used specifically for firms ‘impacted in the short term by the current situation’, according to the Treasury.
The FTSE 100 index opened up 153.40 points, 1.9%, at 8,117.58. The FTSE 250 was up 278.90 points, 1.5%, at 18,793.75, and the AIM All-Share was up 4.19 points, 0.7%, at 652.02.
The Cboe UK 100 was up 2.0% at 808.64, the Cboe UK 250 was up 1.6% at 16,325.94, and the Cboe Small Companies was down 0.1% at 14,793.41.
On the FTSE 100, ConvaTec gained 3.2%.
The London-based medical products and technologies company announced that the outlook for its InnovaMatrix products has improved due to the Centers for Medicare & Medicaid Services postponing local coverage determinations in the US.
‘We previously guided to InnovaMatrix revenue of approximately $50m in FY25,’ ConvaTec said. ‘As a result of the postponement of the LCD...we now expect InnovaMatrix sales of approximately $75m in FY25.’
On the FTSE 250, Ashmore lost 2.5%.
The London-based investment manager said assets under management fell 5.3% on-quarter to $46.2 billion as at March 31, reflecting net outflows of $3.9 billion.
Ashmore said however that emerging markets performed well over the quarter, supported by economic ‘resilience’, tech sector gains in China, and currency moves including a weaker US dollar and stronger euro.
On AIM, Distil rose 21%.
The premium drinks brand owner has agreed a new partnership with Aiko Importers Inc, ‘to bring Blavod Black Vodka back into the US market’.
‘Unlocking distribution for Blavod in the US marks an important moment and growth opportunity for the brand which has enjoyed success in this market in the past, until the previous distributor pulled back during Covid lockdowns,’ commented Executive Chair Don Goulding.
In European equities on Monday, the CAC 40 in Paris was up 2.1%, while the DAX 40 in Frankfurt was up 2.2%.
The pound was quoted at $1.3165 early on Monday in London, higher compared to $1.3057 at the equities close on Friday. The euro stood higher at $1.1395, against $1.1339. Against the yen, the dollar was trading lower at JP¥142.82 compared to JP¥143.46.
In Asia on Monday, the Nikkei 225 index in Tokyo was up 1.2%. In China, the Shanghai Composite was up 0.8%, while the Hang Seng index in Hong Kong was up 2.3%. The S&P/ASX 200 in Sydney closed up 1.3%.
China’s exports jumped approximately 12% year-on-year in March, accelerating from the 2.3% growth recorded across January and February, data from the General Administration of Customs showed. The latest figure exceeded the 4.4% increase expected according to the FXStreet-cited consensus forecast.
Imports dropped 4.3% in March, falling more sharply than the expected 2% decline, but moderating from the 8.4% contraction seen in January and February.
China reported a trade surplus of $102.64 billion in March, beating the $77 billion forecast but down from $170.51 billion previously.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 619.05 points, 1.6%, the S&P 500 up 1.8% and the Nasdaq Composite up 2.1%.
Brent oil was quoted higher at $65.05 a barrel early in London on Monday from $63.43 late Friday.
Gold was quoted lower at $3,228.90 an ounce against $3,239.41.
Still to come on Monday’s economic calendar are US consumer inflation expectations, and comments from Federal Reserve Governor Christopher Waller.
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