06:15 AM EDT, 04/09/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Wednesday highlighted:

Markets: Liquidity-off! Long-end United States Treasuries fall into the close, 2y-30y steepens about 30bps, futures selling continues in Asia. Japanese government bond futures bounce on news about emergency meeting. S&P closes below 5000, Asian equities sell off. US dollar weakens, Brent falls to four-year low near $60/barrel. Schatz future gains, Bund/Buxl futures are modestly lower.

Fed: Chicago Federal Reserve Bank President Austan Goolsbee says tariffs are "way bigger" than he anticipated and Fed cannot rely on just hard data. San Francisco Federal Reserve Bank President Mary Daly says monetary policy is "in a good place to stay modestly restrictive."

Tariffs: U.S. reciprocal tariffs go into effect, including 104% tariffs on China. President Donald Trump says "tariffs situation is a good situation," believes China has to make a deal. Prime Minister Li Qiang says China has ample policy tools to "fully offset" any negative external shocks. The European Union to publish 66 66-page list of tariffs on 22 billion euros of U.S. goods on Wednesday.

==EUROPE:

Germany: CDU/CSU and SPD coalition talks continue contrary to initial headlines, parties aim to reach agreement on Wednesday.

Trade: Spain's PM Pedro Sanchez calls on the EU to rethink its relationship with China and to revise its willingness to find other new partners and open new markets.

Italy: Tesoro announced to tap BTPs Jun28 (3 billion-3.5 billion euros), Nov31 (2 billion-2.5 billion euros), Jun32 (1.25 billion-1.5 billion euros) and Mar38 (1 billion-1.5 billion euros) on Friday.

==ASIA:

Japan: Bank of Japan, ministry of finance, Financial Services Agency to hold meeting at 4 p.m. JST.