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European Shares Seen Opening Mixed

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European stocks are likely to open mixed on Thursday after the U.S. and Mexico failed to reach a deal to avert proposed tariffs.

American and Mexican officials claimed progress in immigration talks late Wednesday, but U.S. President Donald Trump tweeted that it was "not nearly enough" and tariffs at the 5 percent level will begin on Monday, with monthly increases as per schedule, if no agreement is reached.

The Mexican peso fell more than 1 percent as ratings agency Fitch downgraded the country's credit rating to BBB and Moody's changed its outlook to negative from stable.

Investors also remain concerned about the U.S.-China trade spat, with the International Monetary Fund saying that the tit-for-tat tariffs will cost $455bn (£357.5bn) in lost output next year - more than the size of South Africa's economy.

Meanwhile, the European Central Bank rate decision is the key focus for markets today. The central bank is widely expected to leave its benchmark interest rate unchanged at 0.00 percent, reflecting weak growth and inflation outlook.

It remains to be seen whether ECB President Mario Draghi will shift to a more dovish tone and signal openness to further policy easing in the press conference.

The U.S. Labor Department is scheduled to release its more closely watched monthly jobs report on Friday.

Employment is expected to climb by 185,000 jobs in May after surging up by 263,000 jobs in April. The jobless rate is expected to hold at 3.6 percent.

Asian markets are trading mixed as trade talks between Washington and Beijing remain at a standstill.

Gold hovered below the 15-week high hit in the previous session while the yen edged up against the dollar on safe-haven demand.

U.S. crude futures eked out modest gains after falling more than 3 percent on Wednesday on data showing a big increase in U.S. crude stockpiles in the week ended May 31st.

Overnight, U.S. stocks rose to extend gains from the previous session as ADP's shockingly bad payroll data helped reinforce expectations the Federal Reserve would reduce borrowing costs as many as three times in 2019.

The Dow and the S&P 500 rose around 0.8 percent while the tech-heavy Nasdaq Composite added 0.6 percent.

European markets ended mostly higher on Wednesday even as Italian banks fell after the European Commission threatened disciplinary measures on Italy over the country's rising public debt.

The pan European Stoxx 600 rose 0.4 percent. The German DAX and the U.K.'s FTSE 100 both edged up by 0.1 percent while France's CAC 40 index gained half a percent.

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