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

Markets: United States Treasuries stabilized into New York close, remain rangebound in Asia. E-minis decline, China/Hong Kong and Japan are closed. EUR recovers to $1.134. Brent slumps to $59/barrel.

Fed: President Donald Trump reiterates he doesn't plan to fire Federal Reserve Chair Jerome Powell, while describing him as "a total stiff" and repeating calls to lower rates. Incoming supervision Vice Chair Michelle Bowman seeks to review confidential ratings for the health of large banks (WSJ).

U.S.: Trump defends his agenda and downplays worries about higher prices in "meet the Press" interview, while laying groundwork for the idea that Americans are willing to suffer a certain amount of short-term austerity. Trump plans 100% tariff on international movies. He "doesn't rule out" military force to control Greenland. Trump says a third term isn't something he's looking to do.

U.S./China: Trump is willing to lower tariffs on China at some point, notes some "positive" statements recently, but he wants a "fair" deal and has no plans to speak with Chinese President Xi Jinping this week. China weighs Fentanyl offer to the U.S. to start trade talks.

Oil: OPEC+ announces accelerated output hike of 411,000 barrels per day in June. Shell evaluates potential acquisition of BP.

==EUROPE:

ECB: European Central Bank Vice Presient Luis de Guindos is "optimistic" inflation will sustainably meet the 2% target. The stronger euro, falling oil prices and economic uncertainty will be "decisive" in determining whether to cut rates further.

France: Prime Minister Francois Bayrou plans to reduce debt and boost production, and didn't rule out a referendum to secure public backing for the reforms.

EU: Spain will have to raise defense spending to 3% of gross domestic product, European Commissioner for Defense Andrius Kubilius says.

Ratings: Fitch affirms Lithuania at A/stable. DBRS confirms Luxembourg at AAA/stable.