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European and US equity gauges are striving to rally at the end of a turbulent week dominated by fears about the financial sector, as central banks take extreme measures to boost global growth.

The pan-European Stoxx 600, which lost 6.8 per cent over the previous four sessions, rose more than 1 per cent as Commerzbank led a banking sector rebound with a 13 per cent surge after the German lender restored its dividend. Earlier, the Nikkei 225 returned from a day off to slide 4.8 per cent, closing at its lowest level since October 2014. Oil prices bounced on Friday and gold has been trimmed after its biggest one-day rise in seven years the previous day.

In testimony before the US Senate on Thursday, Fed chair Janet Yellen left the door open for the central bank to use negative rates should it need to give the economy a stronger boost even as she played down the possibility. The FT’s Gillian Tett argues that the Fed will “have to play an astonishingly canny hand” in the face of investor concerns. (FT)

In the news

Ceasefire in Syria World powers have agreed to implement a nationwide “cessation of hostilities” in Syria by the end of next week in an effort to salvage the peace talks that crumbled last month. (FT)

Jamie Dimon: financial firefighter The head of JPMorgan Chase has tried to put out a fire in financial stocks by spending more than $26m to buy 500,000 shares in the bank. The move will be seen as a statement that the global sell-off in bank shares has been overdone. (FT)

Einstein was right, again Scientists announced that they had heard and recorded the sound of two black holes colliding 1bn light years away. The slight stretching and squeezing of space fulfilled the final prediction of Einstein’s general theory of relativity, arriving very near the centenary of its publication. (FT)

The battle for the City Britain is at loggerheads with France and Germany over the right of the City of London to diverge from the eurozone’s financial rules, one of the most consequential unresolved issues in the UK’s “new settlement” with Europe. (FT)

Hillary changes tack After a brutal defeat in New Hampshire, Hillary Clinton is shifting tactics to attack Bernie Sanders as “a single issue candidate” and tie herself more closely to Barack Obama’s presidency — a strategy she hopes will help win over voters in the next primary states. Meanwhile, the hedge fund manager Bill Ackman threw his weight behind the billionaire Michael Bloomberg, who is considering a White House run, in an op-ed in which he argues that “America is burning”. (FT)

Japanese companies propose team-up with Boeing Mitsubishi, Kawasaki and Fuji have suggested a risk and revenue sharing partnership with the US aircraft-maker to develop its next-generation small passenger aircraft. Each partner would contribute to the development and production costs for the aircraft. (NAR)

It’s a big day for

Mexican Catholics Pope Francis begins a six-day visit to the country with the second-largest population of his flock amid calls for him to ease the church’s stance on contraception and abortion so women living in the epicentre of the Zika virus can protect themselves from the disease. (FT)

Food for thought

M&A: China’s world of debt Beijing’s state-owned companies are making big bets on mega M&A deals. But the stability of these billion-dollar acquisitions is in question. (FT)

South China Sea battle Later this year an obscure international tribunal in The Hague will issue a decision about contested islands in the South China Sea. For the Obama administration, the ruling will be a seminal moment in the fierce disputes about the South China Sea — a test of China’s willingness to follow international law in its dealings with its neighbours. (FT)

The enduring popularity of personality tests Since it was rolled out across the corporate world in the 1960s, more than 50m people have taken the Myers-Briggs personality test. Proponents say it is an indispensable tool for modern businesses — and even relationships. Critics say it can be dangerously misleading. Can the test — whose origins can be traced to a dinner party in 1917 — still claim to be relevant?

A revival in the art of signwriting New technology that allowed machine operators to print and cut acrylic, vinyl and neon signs hollowed out the industry in the 1980s and 1990s. But the art of signwriting — enlivened by the design flair of modern graffiti and tattoo artists — has bounced back. (FT)

The hunt for ocean gold Somewhere in the Atlantic Ocean, there’s a bounty of sunken gold worth millions of dollars. One team of modern-day treasure hunters knows where it is but getting it to the surface will prove tricky. (BBC)

Grandma swipes right Online dating is no longer just for the young. The number of adults aged 55 to 64 searching for romance on the internet has doubled to 12 per cent in the past three years, according to the Pew Research Centre. (WSJ)

Video of the day

Little fuel for Japan’s start-ups GLM is trying to build an electric car from scratch, while Spiber is recreating the properties of spider silk through genetic engineering. The FT’s Leo Lewis and Kana Inagaki visit two promising Japanese start-ups. (FT)

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