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European Shares Seen Up As Trade Worries Ebb


European stocks are likely to open higher on Monday after Chinese trade data topped forecasts, helping ease investor concerns surrounding slowing global growth.

China's exports grew 1.1 percent last month after falling 2.7 percent in April, according to customs data. Analysts had expected a 3.8 percent decline.

Imports, however, plummeted 8.5 percent after rising 4.0 percent in April given softening external conditions.

Asian markets remain broadly higher after U.S. President Donald Trump suspended plans to impose tariffs on Mexico.

"The tariffs scheduled to be implemented on Monday are hereby indefinitely suspended," Trump tweeted. "Mexico, in turn, has agreed to take strong measures to stem the tide of Migration through Mexico, and to our Southern Border."

Over the weekend, Group of 20 (G20) finance leaders pledged to protect global growth in a joint communique but failed to express a pressing need to resolve trade and geopolitical tensions.

After meeting China's central bank Gov. Yi Gang on the sidelines of the same gathering, U.S. Treasury Secretary Steven Mnuchin said on Twitter that the meeting was constructive and they had "candid discussion on trade issues." He did not give further details.

French Finance Minister Le Maire said that a trade war would mean an economic crisis all over the world and especially in Europe.

The U.S. dollar held firm and oil extended gains while gold prices retreated from a 14-month high.

Monthly GDP estimate, industrial production and foreign trade figures are due from the U.K. later in the day, headlining a light day for the European economic news.

The U.K. economy is forecast to expand 0.4 percent in three months to April from the previous three months. U.K. industrial output is likely to fall 1 percent month-on-month in April, reversing a 0.7 percent rise in March.

U.S. stocks rose sharply on Friday to extend gains for the fourth day as tepid jobs data added to expectations that the Federal Reserve would cut interest rates as soon as July.

U.S. non-farm payroll employment rose by 75,000 jobs in May, falling short of the 185,000 expected by analysts.

The Dow jumped 1 percent to hit its highest level in a month while the tech-heavy Nasdaq Composite surged 1.7 percent and the S&P 500 added 1.1 percent.

European stocks advanced on Friday amid expectations the Fed and the ECB have had to take a more dovish tone to spur growth.

The pan-European Stoxx Europe 600 index climbed 0.9 percent. The German DAX advanced 0.8 percent, France's CAC 40 index rallied 1.6 percent and the U.K.'s FTSE 100 added 1 percent.

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