Markets rise after tariffs on Mexico suspended

Markets rose on Monday.

The S&P 500 rose 0.5 percent, the STOXX Europe 600 rose 0.2 percent and the Nikkei 225 jumped 1.2 percent.

Markets were relieved after US President Donald Trump tweeted late on Friday that he had suspended plans to impose tariffs on Mexico after reaching a deal with that country over stemming the flow of illegal immigration.

While noting that trade concerns remain between the US and China, Yousef Abbasi, global markets strategist at INTL FCStone, said that “the market has really shown its ability and wherewithal to place a bet on the strength of the Fed put”.

However, Lisa Shalett, chief investment officer of Morgan Stanley Wealth Management, said that “we are not confident that rate cuts can cure what ails the economy”.

Early on Monday, China released mixed data on trade, with exports rising 1.1 percent in May from a year earlier but imports plunging 8.5 percent.

Another report on Monday showed that the UK economy contracted by 0.4 percent in April after a 0.1 percent decline in March as manufacturers closed operations in anticipation of the UK's exit from the EU.