LONDON: European stock markets rose on Monday , building on strong pre-weekend gains, after US President Donald Trump dropped threatened tariffs against Mexico and weak US jobs data fanned expectations the Federal Reserve will cut interest rates next month.
"From an economic point of view, an increase in tariffs is like a tax increase ... Higher tariffs negatively affect world trade and global GDP growth," he explained in a client note. At the weekend, finance ministers of the G20 issued a communique saying"growth remains low and risks remain tilted to the downside".
Elsewhere, oil prices steadied after Friday's sharp gains, which came after Saudi Arabia and Russia said they would continue with their output caps.
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