06:16 AM EDT, 10/10/2024 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United States Treasuries continue to sell off into New York close after a tepid 10-year auction, remain weak in Asia. SPX closes at a new high. Equities rally in China, flat in Japan. EUR drops to $1.094. Brent rose back above $77/barrel.

Fed: FOMC minutes show that "almost all" officials agreed that upside risks to inflation had diminished and a "substantial majority" supported the 50bp cut, while "some" favored a smaller cut. However, officials also noted that "labor market conditions remained solid." San Francisco Federal Reserve Bank President Mary Daly says one or two more 25bps rate cuts are likely. Boston Federal Reserve President Susan Collins calls last month's 50bps cut "prudent".

US: Presidential candidate Donald Trump says he would eliminate income taxes for Americans living abroad.

Middle East: Israel's defense minister says retaliation against Iran will be "deadly, precise and above all surprising." US President Joe Biden warns Israel against attacking Iran's nuclear sites.

== EUROPE:

UK: IFS says Finance Minister Rachel Reeves may need to increase taxes by 25 billion pounds in her first budget on Oct. 30.

Italy: Scope Ratings says that Italy's plan to reduce the deficit shows resolve but doesn't address how to meaningfully reduce the debt burden.

Portugal: The 2025 budget proposal will be presented on Thursday. Opposition party says it has to assess proposal before deciding on it.

== ASIA:

China: The central bank set up a CNY500 billion swap facility to provide liquidity to institutional investors to buy stocks.