06:21 AM EST, 03/06/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United States Treasuries weaken in late New York session, remain offered in Asia. 10-year Japanese government bond yield rise above 1.5%, the highest since 2009. SPX edges higher, e-minis flat. EUR rises above $1.08. Brent recovers, remain below $70/barrel.

U.S.: President Donald Trump to delay tariffs on autos from Canada and Mexico for one month; considers exemptions to certain agricultural products. Commerce Secretary Howard Lutnick says that interest rates "will come smashing down."

Fed: Beige Book reports that economic activity rose "slightly" while prices climbed "moderately" in most areas. Businesses report uncertainty about Trump's new policies, particularly on tariffs.

Fed: Roberto Perli, manager of the Fed's System Open Market Account, reiterates plan to steer SOMA maturity close to outstanding USTs, warns about risk to QT and volatility in money markets due to debt ceiling (speech).

==EUROPE:

EU leaders will agree to "substantially increase defence expenditure" and demand "the commission to propose additional funding sources for defence at EU level", according to prepared conclusions seen by FT.

Germany: S&P says defence spending boom is positive for AAA-rating. Federal Chairman of Free Voters (Freie Waehler) Hubert Aiwanger (needed in Bundesrat) reiterates his criticism against fiscal plan in newspaper FAZ. Greens say "we negotiate willingly and hard."

BoE: Bank of England Governor Andrew Bailey says Trump's tariffs pose risk to world economy and don't fix trade imbalances he hopes to address. Chief Economist Huw Pill would err on the side of caution on rates.

France: President Emmanuel Macron to open talks on extending nuclear shield for European allies. He also calls for more military spending without new taxes.

Portugal could face snap elections in May if government loses confidence vote next week.