UK's FTSE 100 set for biggest gain in over 4 years after tariff pause

April 10 (Reuters) - UK shares rose on Thursday in broad-based gains after U.S. President Donald Trump announced an immediate 90-day pause on many tariffs, bringing relief to investors following the recent global market rout.

As of 1015 GMT, the blue-chip FTSE 100 .FTSE rose 4.5%, on pace to post biggest one-day jump since November 2020.

The midcap FTSE 250 index .FTMC climbed 4.7%, poised for its biggest single-day advance since March 2022.

In the dramatic policy shift on Wednesday, Trump suspended most of the hefty tariffs less than 24 hours after they kicked in, providing relief to rattled global markets.

However, he simultaneously escalated the trade conflict with China by raising tariffs on Chinese imports to 125% from 104%, which had only taken effect on Wednesday.

In response, the European Union on Thursday also put on hold for 90 days its first countermeasures against Trump's tariffs, European Commission President Ursula von der Leyen said in a statement on X.

Trump's tariff reversal is not absolute, as the 10% blanket duty on most U.S. imports remaining in effect, the White House said. Existing duties on autos, steel, and aluminum also remain unaffected.

All FTSE 350 sub-sectors traded positively, with financial stocks .FTNMX301010 jumping 6.3%, led by Barclays up 11.8% and Standard Chartered up 7.5% on the FTSE 100.

Industrial metal miners .FTNMX551020 also rose 5% as base metals in London climbed, supported by improved market sentiment after temporary pause on U.S. tariffs.

Meanwhile, a violent U.S. Treasury selloff on Wednesday that reignited fears of fragility in the world's biggest bond market showed some signs of easing on the day.

British 30-year government bond yields also retreated sharply on Thursday as fixed income market tensions eased.

On the flip side, Britain's biggest food retailer, Tesco TSCO.L dropped 6.5% after warning of potential profit declines due to heightened competition in the UK market, with Marks and Spencer MKS.L and Sainsbury SBRY.L also facing pressure and dropping 2.8% and 4.8%, respectively.

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