06:24 AM EST, 12/16/2024 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Monday highlighted:

Markets: United States Treasuries closed at the lows, trend sideways in Asia. Asian stocks are lower, e-minis stabilise. DXY weakens with EUR recovering to 1.052. Oil retreats, gold stabilizes.

==EUROPE:

ECB: European Central Bank Governing Council (GC) Robert Holzmann says it would be wrong to cut rates with the sole purpose of cranking up the economy. GC member Martins Kazaks finds the market's rates view "not massively out of line," and while a 50bps move is possible if the economy slumps, he would be "very, very cautious" about going below the neutral rate as inflation isn't on track to fall below 2%.

Germany: CDU/CSU say they'll maintain the constitutional debt brake and oppose joint European Union debt issuance, according to draft election manifesto. SPD plans to introduce "Made in Germany" tax refund of 10%.

France: Moody's downgrades France to Aa3/stable from Aa2/negative in an unscheduled review, as it sees a "very low probability that the next government will sustainably reduce the size of fiscal deficits beyond next year" and that "public finances will be substantially weakened over the coming years". New Prime Minister Francois Bayrou to meet far-right RN leaders Marine Le Pen and Jordan Bardella on Monday.

Italy: PM Giorgia Meloni pledges financial discipline during budget debate.

Ratings: Moody's downgrades Slovakia to A3/stable from A2/negative and affirms Finland at Aa1/stable. S&P upgrades Cyprus to A-/stable from BBB+/positive. Scope affirms L-Bank at AAA/stable and initiates ratings for several European banks.

==ASIA:

China: Industrial production rose 5.4% year over year in line with expectations (up from 5.3%), retail sales slow to 3% year over year from 4.8%, weaker than expected (consensus 5%). The central bank will increase the intensity of monetary and credit supply and has room to further cut the reserve requirement ratio next year, PBoC's research director says. Securities Regulatory Commission vows to stabilize property and stock markets.