UK Shares Surge as Trump Offers Temporary Tariff Relief to Tech

UK shares rose on Monday following President Trump's temporary exemption of smartphones and computers from Chinese tariffs. The energy sector led gains with Energean's new contract boost. Electronics and technology stocks also surged in the midcap index. However, uncertainty around tariff policies and UK inflation remains.

UK shares experienced a significant boost on Monday after U.S. President Donald Trump temporarily exempted smartphones and computers from steep Chinese tariffs, providing a welcome respite amid recent market volatility. The blue-chip FTSE 100 index climbed 1.8% while the midcap index rose 1.7% by 1020 GMT.

Energy stocks led the gains, driven by higher oil prices following the U.S. tariff exclusions and improved Chinese crude import data. Energean's shares jumped 5.3% as its subsidiary secured a 17-year gas contract with Kesem Energy, and BP rose 5% after an oil discovery in the Gulf of Mexico.

Despite the positive momentum, uncertainties persist. Trump's tariff exemptions are temporary and strategic, targeting domestic semiconductor manufacturing revival. Bank of England official Megan Greene highlighted ongoing concerns over UK inflation and currency volatility as investors navigate this complex economic landscape.

(With inputs from agencies.)