06:17 AM EDT, 04/08/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Wednesday highlighted:

Markets: United States Treasuries fall into the close, better bid in Asia with the ultra-long end steepening. S&P closes higher, Asian equities rebound with Nikkei in the lead. EUR stronger near $1.098, Brent at $65/barrel.

Fed: Federal Reserve Governor Adriana Kugler says priority should be to ensure that inflation doesn't rise, data suggests frontloading among consumers. Chicago Federal Reserve Bank President Austan Goolsbee says hard economic data is still pretty good, but cautions about inflationary pressure from tariffs and potential retaliation.

Tariffs: President Donald Trump threatens 50% additional tariffs on China starting on Wednesday, says all talks terminated unless China withdraws retaliatory tariffs. Adds that "virtually every country" wants to negotiate and his administration isn't looking at a pause in tariffs. Trump team considers exporter tax credit as counterweight to retaliatory tariffs. Treasury Secretary Bessent says tariffs may come down for countries that don't retaliate, says everything can be negotiated.

U.S.: Consumer credit contracted by $800 million in February, consensus was looking for $15 billion increase.

Geopolitics: Trump says US is in direct talks with Iran, will have a "big" meeting on Saturday. Threatens that Iran will be in "great danger" if talks are unsuccessful.

==EUROPE:

EU ready to retaliate, including potential 25% tariffs on some U.S. products in response to U.S. metals tariffs (Reuters sources) as well as taxes on digital companies. Trump rejects EU's 0% tariff offer on industrial products, says EU has to buy more energy from U.S.

==ASIA:

China says it will "fight to the end" if the U.S. insists on tariffs, urges dialogue to resolve disputes.