London pre-open: FTSE seen up on electronics tariff exemption

(Sharecast News) - London stocks were set to jump at the open on Monday, taking their cue from gains in Asia after Trump said that smartphones and computers were exempt from new tariffs.

The FTSE 100 was called to open around 2% higher.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "The new week starts on relief that the US will exempt electronics 0 most of which are made in China - from headline tariffs. Futures are hinting at strong gains across the US and European indices.

"Hon Hai - a major Apple supplier jump opened in Asia but is giving back gains since then as Donald Trump said Sunday that the tech sector won't be exempt from tariffs, they will be in a different tariff bucket.

"Prepare for another week of hectic headlines, uncertainty and high volatility - and thinning holiday volumes into the Easter break won't help in terms of volatility."

In corporate news, Wood Group said that Dubai's Sidara has made a non-binding conditional takeover proposal valuing the company at 35p per share that it would be minded to recommend.

The proposal also includes a possible capital injection of $450m from Sidara and would require Wood to seek an extension of its existing committed debt facilities.

Wood Group said: "Work continues on a range of alternative refinancing options. However, having carefully considered the viability of these options together with its financial advisers, the board of Wood currently believes that the possible offer represents the better option for Wood's shareholders, creditors and other stakeholders.

"Accordingly, the board of Wood has indicated to Sidara that, should an offer be made on the terms set out above, it would be minded to recommend the offer to Wood's shareholders, subject to agreement of the full terms and conditions of the offer."

Elsewhere, medical products group Convatec said the sales outlook for InnovaMatrix has improved after an announcement by the US government late last week.

The Centers for Medicare & Medicaid Services on Friday postponed so-called local coverage determinations (LCDs) for certain products used to treat diabetic foot ulcers and venous leg ulcers, meaning that Medicare patients with those conditions will continue to benefit from access to InnovaMatrix.

As a result, guidance for InnovaMatrix sales this year has been hiked from $50m to $75m.

Kainos said in an update that it expects to report full-year revenue and adjusted profit in line with consensus forecasts, supported by a stronger fourth quarter and disciplined cost management.

The FTSE 250 software company said its Workday Products division delivered robust growth, with annual recurring revenue exceeding �72m, while Digital Services saw renewed momentum in public sector and international markets despite ongoing weakness in the commercial sector.

Although Workday Services demand remained subdued, early signs of recovery and recent international wins offered cautious optimism amid a challenging macroeconomic environment.