06:21 AM EDT, 05/07/2025 (MT Newswires) -- Commerzbanm in its "European Sunrise" note of Wednesday highlighted:

Markets: Long-end United States Treasuries rally into New York close amid high demand at 10-year auction. Front-end weaker in Asia while 30-year remains better bid. E-minis and Asian stocks edge higher. EUR trades around $1.135. Brent increases above $62.5/barrel.

U.S.: Treasury Secretary Scott Bessent says that the debt trajectory is unsustainable. Adds that there is a spending problem, not a revenue problem. Atlanta Fed GDPNow for Q2 rises to 2.24% from 1.1%.

Trade: U.S./China representatives will meet in Switzerland on the weekend for trade talks. Bessent says that current tariff rates are unsustainable and equivalent to a trade embargo. President Donald Trump says he would prescribe tariff levels and trade concessions for partners looking to avoid higher duties.

==EUROPE:

Germany: Prime Minister Friedrich Merz says it is "normal" for some deputies to vote against him; vows to raise potential growth to 2%. Left Party chief Heidi Reichinnek says after her party made the second round of voting possible on Tuesday, "we now expect to be consulted elsewhere as well."

U.K./U.S.: Trade agreement is said to introduce lower tariffs on British car and steel exports up to agreed quota.

U.K.: The Times shadow Bank of England MPC votes 6-3 in favor of interest rate cut amid Trump's tariff policies.

==ASIA:

Chiana: The central bank lowers the seven-year reverse repo rate by 10bps to 1.4% and RRR by 50bps to 9%.

India launches military strikes on Pakistan.