06:27 AM EDT, 07/31/2024 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Wednesday highlighted:

Markets: United States Treasuries (UST) rally into New York close, stay bid in Asia; Japanese government bonds (JGB) bear-flatten at open on sources story about 15bps hike, only modestly weaker post Bank of Japan (BoJ) policy statement, yen (JPY) little changed after volatile moves. Equities better bid, oil recovers.

US: Vice President Kamala Harris has wiped out former President Donald Trump's lead across seven battleground states; held marginal 1pp lead in a new Reuters/Ipsos poll; will announce her vice president pick as early as Monday.

Middle East: Hamas says its political leader Ismail Haniyeh was killed in an airstrike in Teheran.

== EUROPE:

The Netherlands: HICP inflation rises 0.2pts more than expected at 1.3% m/m, 3.5% y/y.

== ASIA:

Japan: The central bank (BoJ) surprisingly hikes key rate and by more than expected (+15bps to 0.25%), but reduces JGB purchases by less than expected (by 400 billion yen/quarter), targets reduction to three trillion yen/month by Q1 2026.

Japan: Newly appointed Vice Finance Minister for International Affairs Atsushi Mimura says recent yen weakness has done more harm than good for the economy. Industrial production (IP) for June disappoints, retail sales are much better than expected.

China: Composite PMI declines to 50.2 in July from 50.5 with components broadly in line with expectations.