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European Shares Seen Higher Ahead Of US Jobs Report

stockmarkets dec12 07jun19 lt

European stocks may open on a firm note Friday amid growing hopes the U.S. and Mexico will agree a deal to avert new tariffs.

The Bloomberg reported that U.S. officials are considering delaying tariffs on Mexican imports to allow for further talks.

Asian stocks remain mostly higher as investors braced for a U.S. jobs report that could sway the course of interest rates.

The report is expected to show employment increased by 185,000 jobs in May after surging up by 263,000 jobs in April. The unemployment rate is expected to hold at 3.6 percent.

Following Wednesday's weaker-than-expected private sector jobs data, the jobs report due later in the day could have a notable impact on the perceived prospects for a near-term interest rate cut by the Federal Reserve.

Closer home, U.K.'s hiring trends remained subdued amid Brexit-related uncertainty, the Report on Jobs by KPMG and Recruitment & Employment Confederation showed.

Permanent placement decreased further in April, while temporary billings grew at the slowest pace for over six years.

Industrial production and foreign trade figures from Germany are due later in the session, headlining a busy day for the European economic news.

U.K. Prime Minister Theresa May will officially step down as the leader of the Conservative Party today, but will stay on as prime minister until a political heir is found.

The U.S. dollar held steady but remained on track for its worst week since March. Oil prices extended gains amid indications that OPEC and allies may extend crude supply cuts.

U.S. stocks rose for the third day running on Thursday amid optimism over a possible U.S.-Mexico trade deal.

The Dow Jones Industrial Average gained 0.7 percent, the tech-heavy Nasdaq Composite added half a percent and the S&P 500 inched up 0.6 percent.

European markets ended Thursday's session on a mixed note after the ECB pushed back the timing of its first post-crisis interest rate hike until at least the middle of next year and U.S. President Trump threatened to raise tariffs on China by another $300 billion if necessary.

The pan European Stoxx 600 edged down marginally. The German DAX slid 0.2 percent and France's CAC 40 index dropped 0.3 percent while the U.K.'s FTSE 100 rose 0.6 percent.

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