05:53 AM EST, 02/03/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Monday highlighted:

Markets: Risk-off. Long-end United States Treasuries recover initial weakness after U.S. tariffs announcement, short-end remains under pressure. U.S. stocks already weakened into the close, e-minis and Asian stocks sag. EUR briefly fell to $1.015, then stabilized around $1.024. Oil, metals and gold are lower.

Tariffs: U.S. President Donald Trump imposes 25% tariffs on imports from Canada and Mexico, and an additional 10% from China starting on Tuesday. Energy imports from Canada will face a 10% tariff. Canada imposes 25% tariffs on U.S. imports in retaliation. Mexico prepares counter-tariffs. China vows to take unspecified "corresponding countermeasures." Trump also plans to put tariffs on steel, aluminum, copper, oil, natural gas and chips "fairly soon as mid-February." Trump still wants to hold separate calls with Canada and Mexico on Monday but doesn't "expect anything very dramatic, we put tariffs on." Tariffs will also "definitely happen" with the European Union. The EU will "respond firmly," a spokesman says.

Fed: Federal Reserve Chair Jerome Powell to testify before House Committee on Feb. 12. Trump says "holding the rates at this point was the right thing to do."

U.S.: New York Fed gross domestic product Nowcast for Q1 slips from 3% to 2.92%.

==EUROPE:

ECB: European Central Bank Governing Council (GC) member Klaas Knot says rates no longer need to inhibit growth when inflation returns to 2%. GC member Francois Villeroy de Galhau says the direction from a restrictive to a neutral stance is "clear."

Netherlands: HICP falls more than expected from 3.9% tear over year to 2.9% in January while consensus was 3.2%.

Germany: AfD and SPD gain 1pt, others unchanged with CDU in the lead at 30% (Bild). CDU leader Friedrich Merz pledges to focus on relief for the economy, labor market and migration during the first 100 days if he were elected as prime minister.

France: The government seeks to adopt the 2025 budget without a vote in the lower house on Monday, exposing it to a potential no-confidence vote.

Belgium: Five-party coalition, led by the right-wing New Flemish Alliance (N-VA), reached a deal to form a new government with Bart De Wever as PM -- the election was in June 2024.

Ratings: S&P affirms Germany at AAA/stable.

==ASIA:

China: Caixin manufacturing PMI disappoints by falling 0.4pts to 50.1 while the consensus was 50.6.