Trade deal with EU rallies stocks

U.S. equities jumped on reports that Donald Trump had secured concessions from the European Union to ease trade tensions. Treasuries declined on the news, while automakers, battered by the threat of tariffs, pared losses.

The S&P 500 Index pushed higher for the third straight day, and the Dow Jones Industrial Average jumped after Dow Jones reported, citing an EU official, that Europe had agreed to lower industrial tariffs, align regulatory standards on medical products and import more U.S. soybeans.

Trump’s meeting with European Commission chief Jean-Claude Juncker came amid a raft of earnings from U.S. companies, some of which reflected the impact of recent trade threats from the White House. General Motors shares plunged after the carmaker cut its profit forecast on surging metals prices. Fiat Chrysler also cut its profit outlook. Shares of both automakers pared some of their losses on the news of Europe’s concessions.

The Stoxx Europe 600 Index retreated. Asian equities advanced, although Shanghai stocks finished lower as positive sentiment spurred by Beijing’s willingness to support the Chinese economy showed signs of fading.

The greenback slipped as traders awaited developments from the meeting between Trump and Juncker. Trump was upbeat about the meeting, saying, “We expect something very positive.” The U.S. president earlier sent a Twitter message demanding both sides drop all tariffs, barriers and subsidies, before claiming the Europeans wouldn’t.

The yen edged up after the Bank of Japan refrained from scaling back its bond purchases at a regular operation Wednesday. Most European government bonds rose ahead of Thursday’s European Central Bank meeting. Turkey’s lira regained some of the previous session’s losses, sustained after the central bank unexpectedly kept rates unchanged. Gauges of emerging-market currencies and shares climbed. Texas crude ticked up on stockpile decreases, and gold gained.