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| US stock markets rise on Trump tariff rollback | US stock markets rise on Trump tariff rollback |
| (about 1 hour later) | |
| Watch: US markets rise at open after turbulent week | Watch: US markets rise at open after turbulent week |
| US stock markets rose on Monday after the White House said tariffs on imports of Chinese-made smartphones and some other electronics devices would not apply. | US stock markets rose on Monday after the White House said tariffs on imports of Chinese-made smartphones and some other electronics devices would not apply. |
| The rollback, issued early on Saturday, may end up being short-lived after President Donald Trump said these goods were simply being moved into a different tariff group or "bucket". | The rollback, issued early on Saturday, may end up being short-lived after President Donald Trump said these goods were simply being moved into a different tariff group or "bucket". |
| In Europe, the UK's FTSE 100 closed up 2.1% while the main stock indexes in France and Germany both climbed. | In Europe, the UK's FTSE 100 closed up 2.1% while the main stock indexes in France and Germany both climbed. |
| Despite the partial rebound, global stock markets are still lower than before Trump's "Liberation Day" tariffs announcement on 2 April. | Despite the partial rebound, global stock markets are still lower than before Trump's "Liberation Day" tariffs announcement on 2 April. |
| The main US and European stock markets suffered historic falls followed by record rises after Trump suspended many tariffs for 90 days. | The main US and European stock markets suffered historic falls followed by record rises after Trump suspended many tariffs for 90 days. |
| Most imports from China to the US had faced a levy of 145% under Trump's new trade regime. Beijing responded with its own 125% tariffs on American products coming into China. | Most imports from China to the US had faced a levy of 145% under Trump's new trade regime. Beijing responded with its own 125% tariffs on American products coming into China. |
| The Trump administration is expected to announce tariffs on semiconductors on Monday, and smartphones, computers and other electronic devices exempted will fall into this category. | The Trump administration is expected to announce tariffs on semiconductors on Monday, and smartphones, computers and other electronic devices exempted will fall into this category. |
| The technology-heavy Nasdaq index was up 1% on Monday. The S&P 500 nudged up 1.2% while the Dow Jones Industrial Average gained 1.1%. | |
| Apple - which makes most of its iPhones intended for sale in the US in China - saw its share price jump 5% in early trading on Monday's before settling to 3.8% higher. Chip maker ASML and tech firm Dell also rose. | |
| "Investors were so relieved to have some good tariff news to latch onto for a change that they weren't overly concerned with the potential complications which may be coming down the line," said Danni Hewson, AJ Bell's head of financial analysis. | "Investors were so relieved to have some good tariff news to latch onto for a change that they weren't overly concerned with the potential complications which may be coming down the line," said Danni Hewson, AJ Bell's head of financial analysis. |
| Monday's gains have not reversed the losses since tariffs were first announced. | Monday's gains have not reversed the losses since tariffs were first announced. |
| The S&P 500 index is 4.3% down over the last month while the FTSE 100 is 5.8% down, the German Dax is 8.8% down, and the French Cac 40 is 9.4% down. | The S&P 500 index is 4.3% down over the last month while the FTSE 100 is 5.8% down, the German Dax is 8.8% down, and the French Cac 40 is 9.4% down. |
| "It looks like the tech exemption provided some relief, but these rebounds can be temporary," Sree Kochugovindan, a senior economist at aberdeen group, told the BBC. | "It looks like the tech exemption provided some relief, but these rebounds can be temporary," Sree Kochugovindan, a senior economist at aberdeen group, told the BBC. |
| "There is still risk of more volatility given the lack of clarity during this 90-day tariff pause," she said. | "There is still risk of more volatility given the lack of clarity during this 90-day tariff pause," she said. |
| Meanwhile, the value of the US dollar continued to fall on Monday - down 0.8% against the British pound, having dropped 2.8% against the pound since Thursday. | |
| Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the dollar's weakness was "because of the damage expected to the US economy". | Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the dollar's weakness was "because of the damage expected to the US economy". |
| She added that the currency is usually seen as a safe haven for investors but "Trump has damaged the US's reputation on the global stage". | She added that the currency is usually seen as a safe haven for investors but "Trump has damaged the US's reputation on the global stage". |
| The bond market appeared stable on Monday, with a key interest rate on US government debt down to 4.4%, but still higher than before 2 April. | The bond market appeared stable on Monday, with a key interest rate on US government debt down to 4.4%, but still higher than before 2 April. |
| The rate spiked last Wednesday as investors worried about a possible recession and sold US government bonds, which are also usually seen as a safe investment. | The rate spiked last Wednesday as investors worried about a possible recession and sold US government bonds, which are also usually seen as a safe investment. |
| Trump and his supporters argue all this volatility is part of a "transition" towards firms doing more business in the US and employing American workers. | Trump and his supporters argue all this volatility is part of a "transition" towards firms doing more business in the US and employing American workers. |
| However, many economists and businesses argue that moving manufacturing back to the US could take decades and that tariff uncertainty weakens the US economy in the meantime. | However, many economists and businesses argue that moving manufacturing back to the US could take decades and that tariff uncertainty weakens the US economy in the meantime. |