San Francisco Frontiers - Eurozone stocks climb before ECB rate decision

With markets widely expecting the ECB to trim borrowing costs, all eyes will be on central bank President Christine Lagarde's press conference for clues on future policy.

"Investors will be more focused on any signals regarding the pace of any further potential cuts," noted Russ Mould, investment director at AJ Bell.

"Inflation isn't a problem, but sluggish economic growth is. That points to further monetary easing to encourage more borrowing and spending by consumers and businesses."

The ECB decision is due after soft US economic data boosted expectations that the Federal Reserve will soon cut American interest rates, weighing on the dollar Thursday.

Investors are keeping track of developments in President Donald Trump's trade war and signs of movement on possible talks between the US leader and his Chinese counterpart Xi Jinping.

Wall Street provided an uninspiring lead to Asian and European trading Thursday as a report by payroll firm ADP showed private-sector jobs rose by 37,000 last month.

This was a sharp slowdown from April's 60,000 and less than a third of the amount forecast in a Bloomberg survey.

Another survey showed activity in the US services sector contracted in May for the first time since June last year.

The readings stoked concerns that the world's number one economy was stuttering, with the Fed's closely watched "Beige Book" study noting that "economic activity has declined slightly".

It flagged household and business caution caused by slower hiring and heightened uncertainty surrounding Trump's policies.

The readings ramped up bets on a Fed cut, with markets pricing in two by the end of the year, starting in September.

Eyes are now on the US non-farm payrolls release on Friday, which the Fed uses to help shape monetary policy.

Still, there is some concern that Trump's tariff blitz will ramp up inflation, which could put pressure on the US central bank to keep borrowing costs elevated.

In Asia, the Seoul stock market rallied more than one percent on continued excitement after the election of Lee Jae-myung as South Korea's new president.

The vote ended a six-month power vacuum sparked by the impeachment of predecessor Yoon Suk Yeol for a calamitous martial law attempt.

The won rose versus the dollar, building on a recent run-up.

Jakarta advanced as Indonesia's government began rolling out a $1.5 billion stimulus package after Southeast Asia's biggest economy saw its slowest growth in more than three years in the first quarter.

Tokyo fell following another weak sale of long-term Japanese government bonds, which added to recent concerns about the global debt market.

Chinese stock markets climbed.

- Key figures at around 1000 GMT -

Paris - CAC 40: UP 0.5 percent at 7,843.61 points

Frankfurt - DAX: UP 0.4 percent at 24,379.63

London - FTSE 100: UP 0.3 percent at 8,824.91

Tokyo - Nikkei 225: DOWN 0.5 percent at 37,554.49 (close)

Hong Kong - Hang Seng Index: UP 1.1 percent at 23,906.97 (close)

Shanghai - Composite: UP 0.2 percent at 3,384.10 (close)

New York - Dow: DOWN 0.2 percent at 42,427.74 (close)

Euro/dollar: UP at $1.1427 from $1.1417 on Wednesday

Pound/dollar: UP at $1.3578 from $1.3548

Dollar/yen: UP at 143.14 yen from 142.86 yen

Euro/pound: DOWN at 84.14 pence from 84.26 pence

Brent North Sea Crude: UP 0.4 percent at $65.14 per barrel

West Texas Intermediate: UP 0.4 percent at $63.10 per barrel

burs-bcp/lth

I.Rodriguez--SFF