European shares gain on Mexico tariff relief

June 10, 2019

(Reuters) – European shares rose on Monday as strong export data out of China and the reaching of a deal between the United States and Mexico provided some relief to markets worried by the impact of President Donald Trump’s aggressive trade bargaining.

Helping the European auto sector were signs that Fiat Chrysler Automobiles NV and Renault SA were looking for ways to resuscitate their collapsed merger plan and secure the approval of Nissan Motor Co.

The pan-regional STOXX 600 index rose 0.3% by 0713 GMT, with Britain’s FTSE 100 up 0.43%. However trading volumes were thin with markets in Germany, Switzerland, Austria and most Nordic countries closed for Whit Monday.

Shares of tariff-sensitive auto makers and their suppliers rose 0.596% on the news of Trump’s retreat on last month’s shock threat of a 5% import tariff on all Mexican goods in exchange for moves on immigration.

Fiat Chrysler jumped 3%, while Renault’s shares were up 1%.

Among other stocks, Thomas Cook’s shares rose 20.21% after a report that Hong Kong’s Fosun Tourism was in talks to buy its tour operating business as the British group faces breakup after issuing three profit warnings in the past year.

(Reporting by Amy Caren Daniel and Agamoni Ghosh in Bengaluru; editing by Patrick Graham)

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