06:31 AM EDT, 08/06/2024 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Tuesday highlighted:

Markets: Japanese equities rebound by some 10%. United States equities softened into the New York close, e-minis recover in Asia. US Treasuries (UST) fall, German Bund future gaps lower. Yen (JPY) weakens, the euro (EUR) little changed. Oil recovers.

Fed: San Francisco Federal Reserve Bank President Mary Daly is "more confident" about the Fed goals, says it's "extremely important" that the Fed doesn't let labor market slow too much. "Policy adjustments will be necessary in the coming quarters."

Fed: Smallest share of US banks tightened standards since 2022. Consumer demand for loans generally declined and banks reported tighter standards and weaker demand for all commercial real estate (CRE) loan categories (SLOOS).

Banks: Fed updated guidance for resolution plans of US and international banks, preferring a "home country-led resolution" for international banks.

US: Vice President Kamala Harris narrows running mate search to Josh Shapiro and Tim Walz (Reuters).

Middle East: Explosions reported near US base in Iraq. Iran organizes a meeting of Organisation of Islamic Cooperation (OIC) to back its right to reprisal against Israel.

== EUROPE:

UK: United Kingdom Finance Minister Rachel Reeves declines to rule out an increase in capital gains tax, leaves the door open to borrow more by stripping out Bank of England (BoE) losses. BRC retail sales rose a tad more than expected in July.

== ASIA:

Japan: Ministry of finance (MoF), Bank of Japan (BoJ) and Financial Services Agency (FSA) are holding a meeting on Monday to discuss financial markets. Prime Minister Fumio Kishida says stock market developments should be judged calmly.

Japan: The government plans a record hike in minimum wage by about 5% (Reuters). Cash earnings in June were stronger than expected at 4.5% (consensus: 2.4%), household spending fell more than expected to -1.4% (-0.8%).

Australia: The central bank (RBA) leaves the cash rate unchanged at 4.35% as expected. Stresses that "inflation in underlying terms remains too high."