FTSE 100 Live 14 April: Blue-chip shares rally, esure sold in £1.3bn deal

HSBC, Prudential and other stocks with Asia exposure fared well today as the FTSE 100 index surged 2% on hopes of a tariffs exemption for consumer electronics.

The potential reprieve for smartphones and associated products that account for about 23% of US imports from China fuelled a rally for Asia markets.

The Nikkei 225 rose 1.2% and the Hang Seng index climbed 2.4%, despite later comments from President Trump suggesting the pause on tariffs is only temporary.

Other leading European benchmarks rose 2% and Wall Street futures traded higher as investors still clung to hopes that the moves signal a step back in the US-China trade war.

The FTSE 100 index traded at its highest level since 4 April, lifting by 1.8% or 146.87 points to 8111.05 as buyers circled many of the past fortnight’s heavily-sold stocks.

They included Barclays, which topped the risers board with a 4% or 10.45p advance to 268.5p, and BP with an improvement of 11.9p to 343.6p.

HSBC rose 21.3p to 764.8p, Prudential improved 23.4p to 755.2p and Standard Chartered surged 4% or 36.6p to 979.6p.

The exemptions on consumer electronics lifted the London-listed tech-focused trusts Polar Capital and Scottish Mortgage by 9.5p to 283p and 19.2p to 882.8p respectively.

Other strong performers included British Airways owner IAG, which put back 7.1p to 247.9p.

Diageo rose 3% or 64p to 2117p after analysts at Barclays backed the drinks giant with an Overweight recommendation and higher target price of 2580p. .

The FTSE 250 index rose 1.7% or 320.95 points to18,835.80, led by Raspberry Pi following an improvement of 9% or 36.8p to 458p.

IT services business Kainos was next on the risers board, lifting 7% or 43.5p to 679p after posting a year-end trading update in line with City expectations.

It said public sector revenues in digital services returned to growth following the election-related hiatus, while its Workday products division “delivered a very strong financial performance”.

Insurance giant Ageas is to buy esure, the UK-based owner of the Sheilas’ Wheels brand, for £1.3 billion.

Belgium’s Ageas said the deal with esure’s owners, investment group Bain Capital, will create the third-largest platform in the UK for personal lines such as motor and home insurance.

Esure made a trading profit of £127 million in 2024 compared to a loss the year before, while turnover grew by one-sixth to £1.1 billion.

The company went public in 2013, with a listing on the London Stock Exchange, before Bain bought it for £1.2 billion five years later.

The deal with Ageas is the latest in a period of consolidation in the UK insurance market, after Aviva agreed to buy Direct Line last year.

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The energy and materials-focused consulting firm Wood today indicated it is willing to back a fresh takeover bid from Dubai-based suitor Sidara.

Aberdeen-headquartered Wood said Sidara – a privately held network of engineering and design companies run from the United Arab Emirates – has put forward a non-binding conditional offer worth 35p per share.

The offer, which would also include a potential $450 million (£342 million) cash injection into Wood, would value the company at around £242 million. The shares today rose 3p to 28.1p.

The moves come almost a year after talks around a previous £1.56 billion takeover approach from Sidara collapsed.

However, the firm’s share value has tumbled in the months since, particularly after recent updates highlighted potential governance failings and need for Wood to restate its accounts.

The Scottish firm’s bosses said they would “be minded to recommend” the latest takeover deal.

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The FTSE 100 index has rallied 1.6% or 127.10 points to 8091.28, supported by demand for stocks in the mining and banking sectors.

Barclays rose 3% or 7.1p to 265p, HSBC cheered 16p to 759.5p, Glencore lifted 3% or 6.6p to 260.25p and Antofagasta improved 2% or 25.5p to 1496p.

Diageo rose 3% or 54p to 2107p after analysts at Barclays backed the drinks giant with an Overweight recommendation and higher target price of 2580p.

Other stocks on the leaders board included BP and Rolls-Royce after gains of more than 2%.

The US tariffs exemptions on consumer electronics meant the Nikkei 225 index closed 1.2% higher, while London-listed tech-focused trusts Polar Capital and Scottish Mortgage advanced by about 3%.

The FTSE 250 index is up 1.3% or 234.88 points to 18,749.73.

US futures are pointing higher despite uncertainty over Friday’s tariffs exemption for smartphones, computers and other electronics.

These categories make up about 12% of all US imports and about 23% of US imports from China.

However, President Trump said yesterday that electronics from China will still face 20% tariffs over fentanyl and that separate levies on semiconductors will be announced in the coming week.

The S&P 500 index is seen about 1% higher, having recovered 5.7% during last week.

IG Index said the mixed signals from Washington and ongoing trade tensions have sown confusion among investors, particularly concerns about long-term investment planning and US economic stability.

It added: “Earnings season gets into its stride this week, providing some distraction from tariffs, though these will likely play a major role in earnings calls over the next few weeks.

The FTSE 100 index is poised to open about 2% higher after Asia markets rallied on Donald Trump’s tariffs exemption for smartphones and computers.

Tokyo’s Nikkei 225 is about 1.7% higher while Hong Kong’s Hang Seng index has risen 2%.

The gains follow a strong end to last week on Wall Street after the Dow Jones Industrial Average rose 1.6%, the S&P 500 index 1.8% and Nasdaq Composite by 2.1%.

The FTSE 100 index, which closed 0.6% higher on Friday but down 1.1% in the week, is forecast to open about 156 points higher at 8115.

The dollar remains at a three-year low against a basket of major currencies, with the pound at $1.31. Brent Crude is $64.81 a barrel and gold at $3231 an ounce.