06:17 AM EDT, 05/08/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United Sttes equities end day higher, e-minis extend gains in Asia. U.S. Treasuries weaker after zig-zag reaction to the Federal Reserve, US dollar trades stronger. Sterling rises on reported trade deal news between the United Kingdom and the U.S.

U.S.: The Federal Reserve keeps rates unchanged. Statement says that "risks of higher unemployment and higher inflation have risen." Chair Jerome Powell says Fed doesn't feel a need to be in a hurry, but rather that "it's appropriate to be patient" and to wait for clarity as there are no "big economic effects in the data yet."

Trade: President Donald Trump teases announcement of a major trade deal, NY Times reports the U.K. as counterparty. Speaking of China, Trump says he's unwilling to cut tariffs preemptively to get trade talks going, thinks "China should reassess who asked for a meeting."

U.S.: Treasury Secretary Scott Bessent says the U.S. will always meet its debt obligations. Adds that the Supplementary Leverage Ratio (SLR) reform has "high priority."

U.S.: Tramp Administration plans to roll back AI chip curbs from the former President Joe Biden era as part of a broader review of semiconductor trade restrictions (Bloomberg sources).

Geopolitics: Pakistan says it "reserves the right to retaliate" after recent strikes by India. Ukraine considers shifting from the US dollar to the euro as a reference currency.

==EUROPE:

EU: Prime Minister Friedrich Merz says European Union fiscal rules could be softened for defense similar to Germany, opposes new joint debt.

==ASIA:

Japan: Central bank (BoJ) Baord member Toyoaki Nakamura says rates should be raised if economic outlook is realized.