(Bloomberg) -- European shares rose at the open on Monday, tracking Asia markets up, after the U.S. dropped its plans to impose new tariffs on Mexican goods. Some European markets, including Germany and Switzerland, remain closed today for a holiday.
The Europe Stoxx 600 Index edged higher, extending last week's advance when the benchmark had its best weekly return in two months. Basic resources and oil shares led gains Monday. Thomas Cook soared 24% after it confirmed talks with Fosun International about a potential offer for its tour operator business. Mediaset jumped 5% on its plans to combine its Italian and Spanish businesses in a new Dutch holding company.
U.S. President Donald Trump finally abandoned plans for levies on Mexico after the country promised steps to stem an influx of illegal migration. Trump had threatened to impose a 5% tariff on all Mexican imports to the U.S. that could increase to 25% by October.
“This week should be a transitional one, in which the market consolidates last week's levels, as we head to the G-20 over the weekend,” said Diego Fernandez, chief investment officer at A&G Banca Privada in Madrid. “What has become clear is that central banks are the key players for markets and, although the message is that the economy is deteriorating, the momentum for equities remain as there is no clear alternative.”
To contact the reporter on this story: Macarena Munoz in Madrid at mmunoz39@bloomberg.net
To contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Jon Menon
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