06:24 AM EDT, 09/05/2024 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United States Treasuries (UST) rally into New York close, start to consolidate in Asia. 2-10y curve remains at zero. E-minis steady while Nikkei partly recovers from initial drop. The euro (EUR) maintains most of Wednesday's gains, trades closely below $1.108. Brent remains below $73/barrel.

Fed: Beige Book reports that economic activity was flat or declining in most regions while employment levels were flat to slightly up. Layoffs remained rare, but firms reduced workers' hours. Prices and wages rose modestly.

Fed: San Francisco Federal Reserve Bank President Mary Daly says rate cut is needed to sustain healthy labor market; "don't know yet" how big a rate cut is needed. Atlanta Federal Reserve President Raphael Bostic says price stability and maximum employment goals are now in balance, while he isn't willing to declare victory on inflation yet.

US: Vice President Kamala Harris suggests 28% capital gains tax on people earning $1 million or more; proposal is less than what President Joe Biden has suggested. Biden to block Nippon Steel's takeover of US Steel (Bloomberg). Atlanta Fed Q3 GDPNowcast increased to 2.1 from 2.0%. August auto sales were slightly weaker than expected.

== EUROPE:

EU: Former Italian Prime Minister Mario Draghi warns the European Union is falling behind rivals in terms of competitiveness amid limited innovation, high energy prices and skills gap. He is expected to present his detailed report on this topic including solutions on Monday.

Italy reached agreement with the EU to extend lucrative licenses for beach concessions until 2027.

== ASIA:

Japan: Bank of Japan (BoJ) board member Hajime Takata stresses need for another hike if inflation develops as projected although there is no rush. Real cash earning for workers in Japan rose by 0.4% in July.