06:22 AM EDT, 10/16/2024 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Wednesday highlighted:

Markets: Long-end United States Treasuries rally into New York close. Japanese equities weaken, after SPX came off the highs. The euro remains close to the lows around $1.089. Brent stabilizes above $74/barrel after Tuesday's drop.

Fed: Atlanta Federal Reserve President Raphael Bostic says he is confident inflation will drop back to 2%; he supports another 50bps cut in 2024; expects a long-term rate between 3.0%-3.5%. San Francisco Federal Reserve Bank President Mary Daly says Fed must stay vigilant as inflation eases and the labor market cools down. NY Fed's three-year consumer inflation expectations increased to 2.7%, five-year to 2.9%.

US: Presidential candidate Donald Trump defends tariffs plans in an interview with Bloomberg, arguing that increased tariffs and more direct consultation with the Fed would result in substantial growth.

== EUROPE:

EU has prepared a list of US goods it could put tariffs on if Trump were to win the election and follow through with his tariff plans.

Italy: Prime Minister Giorgia Meloni plans 3.5 billion in new taxes on banks and insurance companies, "no new taxes for citizens." Finance Minister Giancarlo Giorgettio to explain the details in a press conference at 11 a.m. CET.

Portugal: Far-right Chega party says it will vote against minority government's 2025 budget.

UK: British Finance Minister Rachel Reeves plans 40 billion pounds in tax hikes and spending cuts in her new budget.

== ASIA:

Japan: Bank of Japan policymaker Seiji Adachi says conditions for policy normalization are met, but it should be a gradual process.