A sharp rebound in global equities has caught investors’ attention this week, driven by a dramatic twist in the US tariff saga. London’s FTSE 100 leapt to record highs, energised by a carve-out from President Trump’s aggressive trade measures that could spell opportunity for heavyweight tech names like Apple and Nvidia. With markets regaining their footing after a bruising fortnight, investors are eyeing selective resilience amid geopolitical noise and tariff turbulence.
The FTSE 100 rallied 1.97 per cent in early trading, adding 157 points to reach 8121—an indication that investor appetite for UK equities remains strong despite the broader volatility. Much of the optimism stemmed from news that the United States would exempt certain electronics from its proposed “reciprocal tariffs”, originally aimed at curbing Chinese imports. This shift in policy has sparked renewed confidence that global technology firms may find relief after weeks of uncertainty.
Investors are now recalibrating expectations, especially with giants like Apple expected to benefit from the exclusion of consumer electronics from the harshest trade levies. The announcement marks a partial reprieve in an otherwise hawkish trade agenda spearheaded by Donald Trump, which had previously sent shockwaves through equity markets. However, the celebration has been somewhat cautious, with US officials offering mixed messages. Commerce Secretary Howard Lutnick clarified that while electronics are spared from immediate tariffs, semiconductors would still be hit within the next two months. Trump later muddied the waters further by claiming the electronics simply fall under a different tariff category, still subject to a 20 per cent levy as part of a punitive stance against China’s role in fentanyl trafficking.
Despite these ambiguities, markets in Asia and Europe responded positively. Japan’s Nikkei 225 gained 1.2 per cent, while the Hang Seng in Hong Kong surged 2.2 per cent. On the continent, Germany’s DAX jumped 1.9 per cent, with France’s CAC 40 advancing 1.8 per cent, indicating a broader relief rally.
UK-based analysts noted the FTSE’s gains as a signal that international investors are not turning away from Britain amid global uncertainty. Richard Hunter from Interactive Investor acknowledged recent market choppiness, but pointed out the FTSE’s sharp rise as “evidence of continued interest in the UK as an investment destination”.
Companies with significant Chinese exposure were among the early winners. Insurance and financial services group Prudential saw its shares rise 3 per cent, while Standard Chartered climbed 3.5 per cent. Barclays, which derives considerable revenue from the United States, surged 4 per cent in early trades, buoyed by optimism over softer tariffs potentially lifting US consumer sentiment.
Late on Friday, the Trump administration confirmed the exclusion of electronics from the broader tariff regime in a move designed to keep prices stable for imported consumer products. China welcomed the shift as a modest yet positive step, while reiterating its call for a complete rollback of all tariffs.
The policy reversal is expected to benefit not just smartphone giants like Apple and Samsung but also chipmakers including Nvidia, who had been among the hardest hit during the market downturn. Last week’s sweeping tariff announcements had led to a $2.1 trillion wipe-out from the combined market value of the so-called “Magnificent Seven” – Apple, Microsoft, Nvidia, Amazon, Tesla, Alphabet, and Meta.
However, as the tariff stance softened, much of that value clawed back. By the end of the week, the collective decline had narrowed to $644 billion, representing a far less severe 4 per cent loss from peak levels.
Investors are now keenly focused on how Wall Street will respond when the opening bell rings on Monday, with renewed hopes that the worst of the tech stock sell-off may be behind them. While further policy shifts remain a wildcard, the current reprieve has injected much-needed momentum into battered markets and reaffirmed the potential of UK and tech-linked equities in navigating ongoing trade headwinds.
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