LIVE MARKETS-Opening snapshot: trade relief, China data boost Europe

* STOXX 600 up 0.4%, extending last week's gains * Renault, Fiat rise on hopes carmakers reviving merger * German, Swiss markets shut for holiday June 10 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. Reach her on Messenger to share your thoughts on market moves: josephine.mason.thomsonreuters.com@reuters.net OPENING SNAPSHOT: TRADE RELIEF, CHINA DATA BOOST EUROPE (0726 GMT) Washington's decision to drop its threat to impose tariffs on Mexican imports, averting an escalation of the global trade tensions, and strong Chinese export data are helping European stocks extend last week's gains in early deals. The pan-European STOXX 600 is up 0.3%. There may also be some residual buying after weak U.S. nonfarm payrolls data on Friday spurred hopes of a U.S. interest rate cut. Liquidity is lower than usual with markets in Germany, Switzerland, Sweden, Norway, Denmark and Iceland shut for national holidays. Trade-sensitive stocks like miners, cars and chip makers are leading the gains, but dealmaking is driving most individual moves: Fiat Chrysler is up 2.9% and Renault is 2.1% higher after Reuters reported the two carmakers are looking for ways to resuscitate their collapsed merger plan and secure the approval of the French carmaker's alliance partner Nissan. BAE Systems, up 0.8%, is benefiting from hopes of further dealmaking in the aerospace and defense sector after United Technologies announced yesterday it has agreed to combine its aerospace business with U.S. contractor Raytheon, in what would be the sector's biggest ever merger. Some dealers caution though that the creation of a giant in aviation and defense procurement may not be an advantage to suppliers and competitors in the long run. Plumbing products distributor Ferguson is bottom of the FTSE 100, down 3.8% after its third-quarter revenue fell short of estimates due to slowing growth in the U.S.. Thomas Cook shares are surging, up 20% on news Hong Kong's Fosun Tourism is in talks to buy its tour operating business, the latest sign that the British group will be broken up after issuing three profit warnings in the past year. (Josephine Mason) ***** RISK-ON FOR EUROPE (0624 GMT) European stock futures have opened on a strong footing this morning after Washington's decision to drop its threat to impose tariffs on Mexican imports and strong Chinese export data have stirred investors' appetite for risk. The Eurostoxx futures are up 0.5% and at their highest since May 20. On the corporate news front, it's mainly dealmaking that's catching the headlines. Renault and Fiat remain in the spotlight after Reuters reported the carmakers are looking for ways to resuscitate their collapsed merger plan and secure the approval of the French carmaker's alliance partner Nissan. Keep an eye on aerospace and defense companies after news on Sunday that United Technologies agreed to combine its aerospace business with U.S. contractor Raytheon, in what would be the sector's biggest ever merger. A deal on that scale is likely to reshape the competitive landscape of the aviation and defense procurement sector. United Technologies provides primarily commercial plane makers with electronics, communications and other equipment, whereas Raytheon mainly supplies the U.S. government with military aircraft and missile equipment. In other dealmaking, Thomas Cook may get a boost from a report that Hong Kong's Fosun Tourism is in talks to buy its tour operating business as the British group faces breakup after issuing three profit warnings in the past year. Here's your snapshot: And some early headlines: United Technologies, Raytheon to create $120 bln aerospace and defense giant UK house prices show biggest annual rise since Jan 2017 -Halifax Fosun Tourism in talks to buy Thomas Cook's tour operating business-Sky News Gatemore Capital to disclose 10% stake in retailer Moss Bros -Sky News UBS switches stance with plan to offer $113 mln tax settlement in Italy Mediaset to put group under Dutch roof in pursuit of Europe plan Renault, Nissan spar over governance reforms as tie-up strains worsen-sources FCA-Renault revival may hinge on Nissan stake cut - sources Ferguson To Buy Back $500 Mln Shares, Sees 2019 Profit In Line With Analysts' Forecasts (Josephine Mason) ***** EUROPE SEEN EXTENDING GAINS (0540 GMT) European shares are expected to extend last week's gains this morning after Washington stepped back from its threat to hit Mexican goods with import tariffs, quelling worries among investors that another trade conflict in addition to U.S. President Trump's ongoing battle with China would damage global economic growth. Stocks are also likely to get a boost from surprisingly strong Chinese export data for May even amid the escalating trade war, although a sharp drop in imports may stir concerns about slowing domestic demand. There may also be some residual buying after weak U.S. nonfarm payrolls data on Friday spurred hopes of a U.S. interest rate cut. CMC Markets is calling the FTSE 100 to open 32 points higher at 7,332 and the CAC 40 up 20 points at 5,384. Liquidity will be lower than usual with trading in Germany, Switzerland, Sweden, Norway, Denmark and Iceland shut. (Josephine Mason) ***** (Reporting by Danilo Masoni, Helen Reid, Josephine Mason and Thyagaraju Adinarayan)