14th Apr 2025 08:58
(Alliance News) - Stock prices in London opened higher on Monday with consolation for markets in the news that many consumer electronics will be exempt from US tariffs.
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 GBP20 billion. Up to GBP10 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 USD50m in FY25," ConvaTec said. "As a result of the postponement of the LCD...we now expect InnovaMatrix sales of approximately USD75m 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 USD46.2 billion as at March 31, reflecting net outflows of USD3.9 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 USD1.3165 early on Monday in London, higher compared to USD1.3057 at the equities close on Friday. The euro stood higher at USD1.1395, against USD1.1339. Against the yen, the dollar was trading lower at JPY142.82 compared to JPY143.46.
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 USD102.64 billion in March, beating the USD77 billion forecast but down from USD170.51 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 USD65.05 a barrel early in London on Monday from USD63.43 late Friday.
Gold was quoted lower at USD3,228.90 an ounce against USD3,239.41.
Still to come on Monday's economic calendar are US consumer inflation expectations, and comments from Federal Reserve Governor Christopher Waller.
By Emma Curzon, Alliance News reporter
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