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Analysis-For markets, German fiscal splurge blurs ECB outlook

A tectonic shift in German fiscal policy has compounded uncertainty for traders trying to bet on how fast the European Central Bank will cut rates for the rest of the year, with a change to the bank's guidance on Thursday reinforcing that. The ECB cut rates by 25 basis points to 2.50% in its sixth move since last June. That supported traders, who had already reduced bets on ECB rate cuts after a deal from Germany's next coalition partners on Tuesday to create a 500 billion euro ($541.40 billion) infrastructure fund and overhaul borrowing restrictions, partly to boost defence spending.

IMF says US tariffs will hurt Mexican, Canadian economies

WASHINGTON (Reuters) -If sustained, U.S. tariffs imposed on Mexico and Canada will have a significant adverse impact on those countries, the International Monetary Fund said on Thursday, citing the strong integration of both countries with the U.S. economy. IMF spokesperson Julie Kozack said the U.S. tariffs on Mexico and Canada and new duties on China, along with countermeasures announced by China and Canada, and potentially Mexico, amounted to significant new developments.