London — European stocks tumble and sovereign bonds surged on Friday as investors feared President Donald Trump's shock threat of tariffs on Mexico risked tipping the US into recession while disappointing China data added to the woes.

Markets moved aggressively to price in deeper rate cuts by the Federal Reserve in 2018, while US bond yields touched new lows and parts of the curve inverted further, seen as a warning signal for recession in the world's largest economy...

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