Stocks rise on tech tariffs respite, gold hits new high

LONDON — Stock markets rose firmly on Monday after fears over US President Donald Trump's trade war were tempered by tariff exemptions for smartphones, laptops, semiconductors and other electronic products.

But suggestions by Trump that the exemptions would be temporary added to market uncertainty as the dollar extended losses, helping gold to a fresh record high.

European indices jumped around two per cent in midday deals following last week's rollercoaster for equities as the United States and China exchanged tit-for-tat levies.

That tracked gains in Asia, with tech firms helping push Hong Kong up more than two per cent, while Tokyo and Shanghai also closed higher.

The United States on Friday appeared to slightly dial down the pressure on its trade war with Beijing, sparing electronic products -- for which China is a major source -- from painful "reciprocal" levies.

US levies imposed on China have risen to 145 per cent, and Beijing set a retaliatory 125 per cent band on US imports.

Trump on Sunday stressed that the exemptions had been misconstrued and that no country would get "off the hook" in his trade war -- especially China.

He said they would only be temporary as his team pursued fresh tariffs against many items on the list, including on semiconductors "over the next week".

The US leader's comments "have complicated matters with this category of goods apparently set to be placed in a different tariff 'bucket'", said AJ Bell investment director Russ Mould.

"Adding another layer of complexity on to an already complex trade policy may not be that well received by investors, but in the short term there is still likely to be palpable relief, particularly for the likes of Apple and Nvidia," he added.

Data on Monday showed Chinese exports soared more than 12 per cent last month ahead of the swingeing tariffs, with the United States remaining the largest single destination, accounting for $115.6 billion worth of goods.

"But shipments are set to drop back over the coming months and quarters," warned Julian Evans-Pritchard, head of China economics at Capital Economics.

"It could be years before Chinese exports regain current levels."

Amid uncertainty over Trump's trade policy, the dollar extended losses against its major peers on Monday, with the euro around a three-year high and the Swiss franc at its strongest in 10 years.

Treasuries also remained under pressure amid worries that China and other nations might dump their vast holdings, which could call into question the US government bonds as a safe haven.

And gold, a go-to asset of safety in times of turmoil, hit a new peak of $3,245.75 an ounce Monday.

Wall Street finished solidly higher Friday, helped by comments from a top Federal Reserve official that the central bank was prepared to step in to support financial markets.

Key figures around 1040 GMT 

London - FTSE 100: UP 1.9 per cent at 8,113.90 points

Paris - CAC 40: UP 2.3 per cent at 7,264.99

Frankfurt - DAX: UP 2.5 per cent at 20,884.13

Tokyo - Nikkei 225: UP 1.2 per cent at 33,982.36 (close)

Hong Kong - Hang Seng Index: UP 2.4 per cent at 21,417.40 (close)

Shanghai - Composite: UP 0.8 per cent at 3,262.81 (close)

New York - Dow: UP 1.6 per cent at 40,212.71 (close)

Dollar/yen: DOWN at 143.16 yen from 143.49 yen on Friday

Euro/dollar: UP at $1.1388 from $1.1359

Pound/dollar: UP at $1.3184 from $1.3088

Euro/pound: DOWN at 86.36 pence from 86.80 pence

Brent North Sea Crude: UP 0.9 per cent at $65.36 per barrel