05:58 AM EDT, 03/20/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United States Treasuries rally after Federal Reserve meeting, futures top out in Asia with no cash trading on Japanese holiday. Equities rally post-Federal Reserve. EUR initially rises above $1.09 then falls back below. Brent rises above $71/barrel.

Fed keeps rates unchanged between 4.25%-4.5%, reduces quantitative tightening (QT) to a maximum of $5 billion/month for USTs and maintains a maximum of $35 billion/month for MBS. Median dots remain unchanged, indicating two cuts in 2025. Revised core PCE inflation forecast is 2.8% at year-end from 2.5% and 2025 gross domestic product is lower at 1.7% from 2.1%. Federal Reserve Chair Jerome Powell says that base case is for the inflationary impact of tariffs to prove "transitory."

U.S.: President Donald Trump says Fed should cut rates. Also says that he "wouldn't mind" a summit with China's President Xi Jinping in June. The government is likely to stop the expansion of U.S. forces in Japan (NBC).

U.S./United Kingdom are working on a possible trade deal.

Ukraine: President Volodymyr Zelenskiy agrees to Trump's proposal for a mutual halt to strikes on energy assets. Trump agrees to send more air defense to Ukraine. Press Secretary Karoline Leavitt indicates talks on ceasefire in coming days in Saudi Arabia.

==EUROPE:

EU: France succeeded at blocking European Union countries from using 150 billion euros in defense fund from purchasing arms in the U.S., U.K. or Turkey, according to a European Commission proposal.

France: Finance Minister Eric Lombard says that the 2024 budget deficit may be smaller than expected.

==ASIA:

China: The PBoC keeps one- and five-year loan prime rates unchanged at 3.1% and 3.6%, respectively.