UK Shares Surge as Global Markets React to Trump's Tariff Reversal

UK shares rose sharply after U.S. President Trump's unexpected 90-day pause on many tariffs, giving relief to investors amid global market turmoil. FTSE indexes saw significant gains, driven by the suspension of new tariffs. However, the ongoing trade conflict with China looms as Trump increased tariffs on Chinese imports.

UK shares experienced a sharp increase on Thursday, as markets responded positively to U.S. President Donald Trump's announcement of a 90-day suspension on many tariffs. This move provided much-needed relief to investors after recent market fluctuations.

As of 1015 GMT, the blue-chip FTSE 100 index had risen by 4.5%, marking the largest single-day rise since November 2020. The midcap FTSE 250 also showed a 4.7% increase, its most significant leap since March 2022. Trump's decision to suspend tariffs came just hours after their enforcement, which shook global markets.

In a continued shift, Trump raised tariffs on Chinese imports to 125% from 104%, escalating the U.S.-China trade conflict. Meanwhile, the European Union announced a 90-day pause on its countermeasures. Financial and industrial metal sectors saw substantial gains, but food retailers like Tesco struggled in the competitive market.

(With inputs from agencies.)