06:36 AM EDT, 10/03/2024 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United States Treasuries briefly recovered into New York close, turn offered again in Asia. Japanese stocks are firmer, e-minis retreat. DXY remains on the front foot, with the euro falling below $1.103. Yen stabilizes after Wednesday's slide. Brent rangebound around $74.70/barrel.

Fed: Richmond Federal Reserve President Thomas Barkin still sees "significant uncertainty" on inflation and employment.

US: President Joe Biden says a prolonged port strike would be a "man-made disaster."

BIS: The Bank for International Settlements says central banks must stay on inflation alert amid volatility (FT).

Middle East: Biden says Israel should hold off from attacking Iran's nuclear sites. G7 plans a statement in an effort to head off further escalation.

== EUROPE:

ECB: European Central Bank Governing Council (GC) member Isabel Schnabel says "we cannot ignore the headwinds to growth" and "a sustainable fall of inflation back to our 2% target in a timely manner is becoming more likely" (speech). GC member Luis de Guindos says economic risks are to the downside and all options are open for October. GC member Bostjan Vasle says "there will be further cuts" given the slowdown in inflation, while he cannot exclude or commit to an October cut. GC member Mario Centeno says eurozone inflation is "well anchored" and has converged to 2%.

BoE: Bank of England Governor Andrew Bailey sees chance of more aggressive rate cuts (Guardian).

France: President Emmanuel Macron backs temporary extra tax on large companies. He doesn't expect to dissolve the National Assembly again.

Italy weighs new measures to tax bank stock options (Il Messaggero).

Brexit: United Kingdom Prime Minister Keir Starmer promises to "stay firm" in negotiations about closer ties with the European Union and flags first ever UK-EU bilateral summit next year.

== ASIA:

Japan: New PM Shigeru Ishiba says becoming an "investment nation" is a major pillar of economic policy.

Japan: Bank of Japan board member Asahi Noguchi (dove) stresses the need to keep financial conditions easy as it will still take time to establish a public mindset with a 2% inflation target.