06:28 AM EST, 02/24/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Monday highlighted:

Markets: United States Treasuries retreated into New York close, trend sideways in Asia. E-minis rebound while Asian stocks are mostly weaker, Japan is closed. EUR recovers above $1.052. Brent stabilizes below $74.5/barrel.

Fed: Chicago Federal Reserve President Austan Goolsbee says there is still a substantial amount of work to get inflation to 2% and monetary policy should be separate from administration.

U.S.: President Donald Trump says Elon Musk is doing a great job, would like to see him get "more aggressive." Federal agencies advice employees to ignore DOGE demands. NY Fed gross domestic product Nowcast for Q1 slips further to 2.95% from 3.02%. St. Louis Fed nowcast falls to 1.77% from 2.11%.

Ukraine/U.S.: The U.S. is pushing to block Monday's Ukrainian resolution at the United Nations that condemns Russia of aggression and proposes text omitting any mention of occupied territory. President Volodymyr Zelenskiy would be ready to step down if it meant peace and NATO membership for Ukraine. Ukraine pushes back against U.S. demands for a $500 billion fund that would compensate the U.S. for war assistance, seeks to get assurance on future military and financial aid.

==EUROPE:

Germany: CDU/CSU wins the election with 28.6%, followed by AfD at 20.8%, SPD at 16.4%, Greens at 11.6% and Left 8.8%. FDP and BSW remain below 5% threshold, moderate parties miss the 66.6% majority. CDU leader Friedrich Merz wants to form government by Easter, SPD leader Olaf Scholz doesn't see a role in government, FDP leader Christian Lindner ends his political career.

ECB: Governing Council member (GC) Pierre Wunsch is "relatively relaxed" about the inflation outlook but warns against "sleepwalking" into too many rate cuts and European Central Bank needs to stand ready to stop cutting rates soon (FT). GC member Francois Villeroy de Galhau says deposit rate "could be at 2% this coming summer," direction after the summer "is not a debate today." He says the push to de-regulate finance in the U.S. is "dangerous," Europe should focus on simplification. Jose Luis Escriva calls for "cautious" policy decisions given the current "extraordinary uncertainty."

ECB announces changes to the use of external ratings allowing second-best rating for private assets.

EU is exploring ways to seize Russia's frozen central bank assets to support Ukraine and is preparing a 20 billion euros package in additional military support for Ukraine. EU to hold an emergency summit on Ukraine and defense on March 6.

Austria: Centrist parties OVP, SPO and Neos are close to agreeing on a coalition.

Ratings: Moody's affirms Austria at Aa1/stable. Scope affirms Finland at AA+/stable.

==ASIA:

Japan: The Bank of Japan hurdle for emergency Japanese government bond buying is high (Reuters sources).