06:19 AM EST, 02/05/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Wednesday highlighted:

Markets: United States Treasury recovery slows down into New York close, futures test the highs in Asia amid pressure on U.S. equity futures. China opens lower after a holiday. USD, oil sideways, gold prints another high.

Fed: Federal Reserve Vice Chair Philip Jefferson sees no need to hurry to change policy stance; continues to see gradual cuts over the medium term, downside risks in labor market have abated. Federal Reserve Bank of San Francisco President Mary Daly says decision-making doesn't need to be preemptive, "we can take our time to look at what's coming in, both on the economy and any policy changes."

Fed: Federal Reserve Chair Jerome Powell will testify to the Senate Banking Committee next Tuesday.

U.S./ECB: Treasury Secretary Scott Bessent affirmed the importance of transatlantic cooperation in an introductory call with European Central Bank President Christine Lagarde.

U.S./China: The call between U.S. and Chinese presidents scheduled for Tuesday was canceled following China's retaliatory tariffs. President Donald Trump says there is no rush to meet President Xi Jinping, they will speak at the appropriate time. U.S. postal service suspends inbound parcels from China, Hong Kong.

Middle East: President Trump says the U.S. will "take over" Gaza strip and "we'll own it."

==EUROPE:

European Commission (EC) is preparing a proportionate response to U.S. tariff threats following Trump's reversal in North America (Bloomberg). FT reports the EC considers its "anti-coercion instrument" in any potential trade dispute, allowing it to target Tech firms.

Austria: Talks between right-wing FPO and conservative OVP "had at least temporarily been stopped" (media).

==ASIA:

China: Caixin Services PMI disappoints at 51 versus the 52.4 expected, dragging the composite lower to 51.1.

Japan: Cash earnings rise 4.8% year over year in December, the largest increase since 1997.