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Sensex, Nifty Seen Opening Up As US, Mexico Reach Trade Deal

Indian shares look set to open higher on Monday after U.S. President Donald Trump announced late Friday that he would drop plans for tariffs on Mexico as part of a deal on border security and illegal immigration.

Also, U.S job gains slowed sharply in May, prompting Fed watchers to expect rate cuts sooner rather than later.

Benchmark indexes Sensex and the Nifty ended a choppy session slightly higher on Friday but suffered losses on a weekly losses as the RBI failed to announce any concrete measures to address liquidity issues plaguing the NBFC sector.

Progress of monsoon rains, oil price movements and key data on industrial output, wholesale inflation and retail inflation may sway investor sentiment as the week progresses.

Asian stocks edged higher in thin trade, with markets in Australia closed for a holiday. After Group of 20 (G20) finance leaders failed to express a pressing need to resolve trade and geopolitical tensions, investors now await China trade data due out later in the day for further direction.

Crude oil futures extended gains in Asian deals after rallying 2.7 percent on Friday amid signs OPEC members and allies will extend output cuts beyond June.

U.S. stocks rose sharply on Friday to extend gains for the fourth day as tepid jobs data added to expectations that the Federal Reserve would cut interest rates as soon as July.

U.S. non-farm payroll employment rose by 75,000 jobs in May, falling short of the 185,000 expected by analysts.

The Dow jumped 1 percent to hit its highest level in a month while the tech-heavy Nasdaq Composite surged 1.7 percent and the S&P 500 added 1.1 percent.

European stocks advanced on Friday amid expectations the Fed and the ECB have had to take a more dovish tone to spur growth.

The pan-European Stoxx Europe 600 index climbed 0.9 percent. The German DAX advanced 0.8 percent, France's CAC 40 index rallied 1.6 percent and the U.K.'s FTSE 100 added 1 percent.

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