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US markets closed higher on Thursday after President Donald Trump signed a proclamation to impose tariffs of 25% on imported steel and 10% on aluminum, but exempted Canada and Mexico while allowing other countries to negotiate exclusions. The Dow Jones Industrial Average gained 93.85 points, or 0.4%, to end at 24,895.21 and the Nasdaq extended its winning streak for a fifth session to finish at 7,427.95.
European markets jumped to a one-week high after the European Central Bank offered a brighter assessment of economic growth in the Eurozone, and as the euro retreated from intraday gains. The FTSE 100 rose 0.6% to end at 7,203.24, with analysts pinning the advance in part on dovish remarks from European Central Bank President Mario Draghi. The London benchmark has gained for four straight sessions. The pan-European Stoxx Europe 600 closed 1.1% higher at 376.62.
Renault shares spike after report
Shares in French automaker, Renault SA, pared gains after spiking as much as 13 percent following a Reuters report — also denied by a French finance ministry official — of talks with Nissan and government officials about the Japanese automaker purchasing most of the French state’s 15 percent stake. The Renault SA and Nissan Motor Co. alliance denied a report that the companies are in talks to buy the French state out of its holding in the nation’s automaker in a step toward a possible merger.
Carlos Ghosn, the chairman of the alliance between Renault, Nissan and Mitsubishi Motors Corp., has been relinquishing some day-to-day control over the companies to focus on strengthening their ties so that they’ll be preserved over the long term. While a merger is one option toward that effort, this would require the approval of the French and Japanese governments, he said in an interview last week. “Any discussion about a share transaction involving Renault, Nissan or the French state is pure speculation,” Jonathan Adashek, a spokesman for the alliance, said in an email.
Global economics and politics
The European Central Bank unexpectedly dropped a pledge to ramp up bond buying if the economy deteriorates, saying the turnaround in the outlook has given it confidence to change a key part of its monetary-policy guidance. In what the ECB President Mario Draghi said was a unanimous decision, policy makers in Frankfurt surprised investors by ending an easing bias on quantitative easing, effectively a conditional promise to increase debt purchases in “size and/or duration” if needed.
Meanwhile, Donald Trump took the biggest gamble of his presidency on Thursday, breaking decades of U.S. diplomatic norms by accepting an invitation to meet with North Korean leader Kim Jong-un. Trump and his team recognise the possibility that Kim’s outreach is not in good faith or is some sort of ploy, an administration official said. But the U.S. president’s advisers believe that if the U.S. continues to exert maximum pressure on the North Korean regime as the summit approaches, Kim may be forced to make real concessions, even if he enters talks thinking he can avoid them.
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