LONDON (ShareCast) - (Sharecast News) - London stocks rallied on Monday, with both the FTSE 100 and FTSE 250 posting strong gains as investors responded to shifting signals on US trade policy.
The FTSE 100 index rose 2.14% to 8,134.34 points, while the more domestically-focussed FTSE 250 climbed 2.5% to 18,978.51 points.

In currency markets, sterling was last up 0.64% on the dollar to trade at $1.3171, as it gained 0.76% against the euro, changing hands at €1.1609.

Market sentiment improved initially following comments from Donald Trump late Friday suggesting that smartphones and computers would be exempt from a new wave of tariffs.

However, that optimism was partially tempered after Trump clarified in a Truth Social post on Sunday that there was no true exemption, and that such products would remain subject to existing tariffs, though under a different classification.

He also revealed plans to investigate the semiconductor industry and broader electronics supply chain.

"The US president might be changing his tariff policy on a daily basis, but that hasn't stopped stocks from continuing their short-term recovery from last week's lows," said IG chief market analyst Chris Beauchamp.

"Today is a very sleepy session at the index level when compared with the madcap trading of the past two weeks, but for the moment a steady drift higher seems the most likely path assuming tariff headlines remain off everyone's screens."

Beauchamp noted that Goldman Sachs' earnings, released on Monday, were "like a microcosm of earnings season itself", with good numbers for the most recent quarter but concerns over what comes next.

"The turmoil in markets will be a boon for the sector in terms of trading activity, but a recession will hit big banks hard in terms of lending activity, meaning a retest of last week's lows cannot be ruled out."

China trade surplus widens sharply in March, ahead of US tariffs

In economic news, China's trade surplus widened sharply in March as exporters rushed to ship goods ahead of new US tariffs, while imports continued to contract.

According to data released by the General Administration of Customs on Monday, the trade balance rose to $102.64bn, nearly doubling the $58.65bn recorded a year earlier and far exceeding market expectations of $77bn.

Exports rose by 12.4% year-on-year, accelerating from a 2.3% gain in February and surpassing forecasts for 4.4% growth.

The increase was broad-based, although exports of rare earths, steel, and ceramic products lagged.

The surge was widely attributed to Chinese manufacturers front-loading shipments to avoid steep US tariffs set to take effect in April.

Meanwhile, imports declined by 4.3% from a year earlier, a smaller drop than February's 8.4% fall but deeper than the 2% decline forecast by analysts.

The continued weakness in imports suggests subdued domestic demand amid ongoing trade tensions.

Looking ahead, export growth was expected to slow significantly as the full impact of US tariffs takes hold.

Most Chinese goods entering the US now face a 145% levy, with limited exceptions for certain smartphones and electronics.

In response, Beijing raised its own tariffs on US goods to 125% and warned that it was prepared to escalate further.

The Commerce Ministry stated there was now "no market acceptance" for American exports under current tariff conditions.

ConvaTec rises on improved sales guidance, Ashmore in the red

On London's equity markets, ConvaTec Group climbed 4.63% after it raised full-year sales guidance for its InnovaMatrix wound-care product to $75m, up from $50m.

The revision followed a US government decision to delay coverage restrictions for products treating diabetic foot and venous leg ulcers, maintaining access for Medicare patients.

John Wood Group added 4.4% after confirming it had received a non-binding conditional takeover proposal from Dubai-based Sidara.

The offer valued the company at 35p per share and included a proposed $450m capital injection, contingent on extending existing debt arrangements.

Energy giant BP rose 3.57% following the announcement of a new oil discovery at its Far South prospect in the deepwater Gulf of Mexico.

The well, drilled to nearly 24,000 feet, was seen as a potential boost to BP's upstream strategy.

BP holds a 57.5% stake in the project, with Chevron owning the remainder.

Publisher Future surged 9.89% as it continued its £55m share buyback programme, repurchasing 65,000 shares on the day.

Microcomputing specialist Raspberry Pi Holdings gained 6.41%, buoyed by easing trade tensions following US tariff exemptions for certain Chinese electronics.

Aston Martin Lagonda rose 5.09% and Aberdeen Group advanced 5.3%, both rebounding from recent tariff-related and market volatility pressures.

Energean gained 5.32% after securing a 17-year, $2bn natural gas supply contract with Kesem Energy in Israel.

Kainos climbed 6.45% after reporting that its full-year results are expected to be in line with market forecasts, supported by strong fourth-quarter performance and cost control.

On the downside, Ashmore Group dropped 6.43% as the emerging markets fund manager disclosed a 5% quarterly decline in assets under management.

Property marketing portal Rightmove edged 0.25% lower despite an analyst upgrade at Barclays.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,134.34 2.14%
FTSE 250 (MCX) 18,978.51 2.50%
techMARK (TASX) 4,385.84 2.33%

FTSE 100 - Risers

Melrose Industries (MRO) 427.40p 5.53%
Smurfit Westrock (DI) (SWR) 3,145.00p 5.08%
St James's Place (STJ) 864.00p 4.93%
Standard Chartered (STAN) 989.40p 4.92%
Barclays (BARC) 270.40p 4.83%
Intermediate Capital Group (ICG) 1,750.00p 4.60%
Convatec Group (CTEC) 258.40p 4.36%
Babcock International Group (BAB) 716.50p 4.29%
Marks & Spencer Group (MKS) 393.30p 4.13%
CRH (CDI) (CRH) 6,566.00p 4.09%

FTSE 100 - Fallers

London Stock Exchange Group (LSEG) 11,075.00p -0.81%
RELX FINANCE BV 3.375% GTD NTS 20/03/33 (BW73) 99.72p 0.00%
British American Tobacco (BATS) 3,162.00p 0.22%
Rentokil Initial (RTO) 336.00p 0.33%
InterContinental Hotels Group (IHG) 7,744.00p 0.44%
Whitbread (WTB) 2,500.00p 0.44%
Unilever (ULVR) 4,692.00p 0.45%
Unite Group (UTG) 835.00p 0.48%
United Utilities Group (UU.) 1,076.00p 0.84%
Imperial Brands (IMB) 2,921.00p 0.86%

FTSE 250 - Risers

Future (FUTR) 727.50p 9.89%
Urban Logistics Reit (SHED) 138.60p 8.28%
Oxford Nanopore Technologies (ONT) 125.10p 7.94%
Wizz Air Holdings (WIZZ) 1,475.00p 6.88%
Abrdn (ABDN) 138.90p 6.76%
Foresight Solar Fund Limited (FSFL) 78.00p 6.64%
Auction Technology Group (ATG) 625.00p 6.47%
Kainos Group (KNOS) 676.50p 6.45%
Raspberry PI Holdings (RPI) 448.20p 6.41%
Aston Martin Lagonda Global Holdings (AML) 65.65p 6.14%

FTSE 250 - Fallers

Ashmore Group (ASHM) 125.10p -6.43%
BH Macro Ltd. GBP Shares (BHMG) 404.00p -1.34%
Plus500 Ltd (DI) (PLUS) 2,926.00p -0.88%
IG Group Holdings (IGG) 982.50p -0.25%
TI Fluid Systems (TIFS) 199.60p 0.00%
Renewi (RWI) 855.00p 0.00%
W.A.G Payment Solutions (WPS) 63.80p 0.00%
NB Private Equity Partners Ltd. (NBPE) 1,430.00p 0.00%
Tami Senior Securitisation 2 Ltd Cls A-2 Mb Fxd Rte Nts 31/12/23 (Reg S) (BP00) 0.00p 0.00%
International Distribution Services (IDS) 365.80p 0.00%

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