The FTSE 100 joined global stock markets clawing back ground today after Donald Trump's latest extraordinary tariffs climbdown.
The blue chip index was up more than 2 per cent following the US President exempting iPhones, computers and other electronic devices from tariffs.
That includes the 145 per cent levies he had slapped on China imports, encouraging investors in firms such as Apple and Nvidia.
However, the optimism has been tempered by Mr Trump and US commerce secretary Howard Lutnick both suggesting the reprieve might not last.
'They're exempt from the reciprocal tariffs but they're included in the semiconductor tariffs, which are coming in probably a month or two,' Mr Lutnick told ABC on Sunday.
Mr Trump posted on social media that there was no 'exception' because the goods are 'just moving to a different' bucket.
He said they will still face a 20 per cent tariff as part of his administration's move to punish China for its role in fentanyl trafficking.
The FTSE 100 was up nearly 2 per cent in early trading following the Donald Trump exempting iPhones, computers and other electronic devices from tariffs
Despite the FTSE 100 rising back above 8,100 this morning, it remains well below the level before Mr Trump's so-called 'Liberation Day'
The White House has already delayed the implementation of punitive 'reciprocal' tariffs on a swathe of trading partners, although the 'baseline' 10 per cent charge has been kept along with 25 per cent on imports of cars, steel and aluminium.
Despite the FTSE rising back above 8,100, it remains well below the level before Mr Trump's so-called 'Liberation Day'.
The bewildering changes have left the UK's position looking relatively less attractive than other countries.
Cars are among Britain's main goods exports to America, while the ailing steel industry also relies on the route.
Meanwhile, hopes have been fading that Keir Starmer can strike a wider Transatlantic trade deal to get rid of all tariffs.
The PM had hinted at concessions on a digital services tax, but Trump advisers have suggested there is little chance of a complete exemption from levies.
Markets in Asia rebounded overnight, with Japan's Nikkei 225 rising 1.2 per cent, and Hong Kong's Hang Seng index rising 2.2 per cent.
Germany's Dax index rose 1.9 per cent in early trades, while France's Cac 40 was up 1.8 per cent.
Richard Hunter, an analyst at Interactive Investor, said UK markets have lately been 'ever subject to changing conditions which has seen any initial strength dissipating over recent trading sessions as new global developments emerge'.
Nonetheless, the FTSE's spike 'shows some evidence of continued interest in the UK as an investment destination amid the turmoil elsewhere'.
Early gains in the UK included companies with more exposure to China, such as Prudential and Standard Chartered, which saw 3 per cent and 3.5 per cent increases in share price, respectively.
Barclays, which has significant US exposure, also surged 4 per cent in early trading.
China's commerce ministry in a Sunday statement welcomed the shift on electronics as a small step, but reiterated calls for the US to cancel the rest of its tariffs.
Investors will next turn to the opening bell on Wall Street this afternoon, after the tariff turmoil battered the stocks of tech's 'Magnificent Seven' last week.
At one point the combined value of Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet and Facebook parent Metahad plunged by $2.1trillion, or 14 per cent, from April 2.
When he paused the tariffs apart from on China on Wednesday, the lost value in those companies was pared to $644billion, a 4 per cent decline.
