06:18 AM EST, 02/13/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United States Treasuries turn better bid in Asia, driven by front-end as new 10-year note finds sluggish demand. SPX recovers most of Wednesday's drop, e-minis also supported. DAX future rallies to new record high on Ukraine-Russian peace hopes. EUR rises to $1.044. Brent drops noticeably, trading around $74.5/barrel.

Fed: Federal Reserve Chair Jerome Powell highlights progress on inflation but adds that "we're not quite here yet;" wants to keep policy restrictive for now. Federal Reserve Bank of Atlanta President Raphael Bostic says more clarity on new policies on trade and immigration is needed before adjusting rates; adds that the neutral rate is between 3%-3.5%. Chicago Federal Reserve President Austan Goolsbee considers the latest inflation print "sobering."

U.S.: President Donald Trump says he may sign reciprocal tariffs on Thursday or on Friday.

Ukraine: Trump agrees with Russian President Vladimir Putin to "start negotiations immediately" to end the war in Ukraine; says that meeting in Saudi Arabia will probably happen in "not-too-distant future." Adds that NATO membership isn't practical for Ukraine. U.S. Defense Secretary Pete Hegseth says Ukraine's goal to recover all territory it lost since 2014 is an "unrealistic objective." European Union officials fret about being cut out of U.S.-Russia negotiations.

==EUROPE:

ECB: European Central Bank Governing Council member Joachim Nagel says that there is "no reason to act hastily" regarding further cuts as rates approach neutral. Adds that we should not be over-optimistic regarding the next rate decision.

Germany: Bundesbank will come up with a proposal for a debt brake overhaul after this month's parliamentary election.

France: Prime Minister Francois Bayrou survives another no-confidence vote, clearing the path for a vote on the social security bill next week.

Austria: President Alexander Van der Bellen lists various options after the collapse of coalition talks, including expert government, minority government or new elections.

U.K.: Bank of England Megan Greene says rates will need to stay higher for longer given that inflation is unlikely to fade. Chief Economist Huw Pill is cautious about further rate cuts.