US STOCKS-Futures rise after Trump calls off Mexico tariffs

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* Futures up: Dow 0.45%, S&P 0.43%, Nasdaq 0.51%

By Aparajita Saxena
June 10 (Reuters) - U.S. stock index futures rose on Monday
after the United States abandoned plans to impose tariffs on
Mexican goods, while a multi-billion dollar deal between United
Technologies and Raytheon added to the upbeat mood.
Mexico agreed to step up efforts to stem the flow of illegal
Central American migrants, after U.S. President Donald Trump had
threatened to impose 5% import tariffs on all Mexican goods
starting Monday if the Latin American country did not commit to
do more to tighten its borders. Shares of U.S. automakers, which have long built vehicles in
Mexico, rose in premarket trading with General Motors Co GM.N
gaining 2.1% and Ford Motor Co F.N rising 1.4%.
United Technologies Corp UTX.N rose 3.3% after the company
agreed to combine its aerospace business with defense contractor
Raytheon Co RTN.N and create a new firm worth about $121
billion. Shares of Raytheon jumped 9.7%. Also adding to the optimism, China's exports unexpectedly
returned to growth in May despite higher U.S. tariffs but
imports fell the most in nearly three years. Investors remained hopeful of a U.S. interest rate cut,
especially after a lackluster jobs data on Friday. A couple of
top Wall Street firms now expect the Federal Reserve to lower
rates by 50 basis points at its July policy meeting.

That helped the S&P 500 .SPX and the Dow Jones Industrial
Average .DJI log their biggest weekly gains since the end of
November. The S&P 500 is now about 3% away from its all-time
high hit in early May.
Still, U.S.-China trade tensions remained in the spotlight.
A Group of 20 finance leaders said trade and geopolitical
tensions have "intensified", raising risks to improving global
growth, but stopped short of calling for a resolution of the
deepening conflict. After almost three years of successfully predicting a global
economic revival, world bond markets are furiously flagging the
risk of yet another recession, as well as low inflation for a
generation. At 7:20 a.m. ET, Dow e-minis 1YMc1 were up 116 points, or
0.45%. S&P 500 e-minis ESc1 were up 12.25 points, or 0.43% and
Nasdaq 100 e-minis NQc1 were up 37.75 points, or 0.51%.
Among other stocks, Kraft Heinz Co KHC.O gained 4% after
the packaged food company said the numbers it restated last
month were accurate following completion of an internal
investigation. On the data front, the Labor Department's Job Openings and
Labor Turnover Survey (JOLTS) for April is likely to be released
at 10:00 a.m. ET.