06:27 AM EDT, 07/08/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Tuesday highlighted:

Markets: United States Treasuries stabilize in late New York and Asia alongside equities. Super-long Japanese government bonds sell off. US dollar crosses are mixed, with the EUR firmer. Oil recovery runs out.

Tariffs: The U.S. offers the European Union a deal to keep a 10% baseline with exemptions for sensitive sectors (Politico). Earlier, Bloomberg and Reuters said the EU wants a preliminary deal this week, locking in 10% tariff beyond Aug. 1 (Bloomberg). President Donald Trump issued new tariffs against 14 countries but suggested he is still open to talks and the Aug. 1 deadline was "not 100% firm."

Fed: Federal Reserve Chair Jerome Powell contestant Kevin Warsh says the Fed needs "regime change", rates should be lower, "tariffs are not inflationary." President Trump's top trade adviser, Peter Navarro, calls on Fed board to intervene against "serious economic damage" caused by Powell.

Russia-Ukraine war: The U.S. announces to send additional weapons. EU aims to fill $19 billion budget gap next year (FT).

==EUROPE:

ECB: European Central Bank Governing Council member Francois Villeroy de Galhau says quantitative easing (QE) "should be our first choice" when faced with the effective lower bound.

Eurogroup adopts "broadly neutral budget stance" for 2026. Excluding increased defense spending, fiscal restraint "remains appropriate" (statements).

EU to allow the United Kingdom and Canada participation in common procurements financed by 150 billion euros SAFE loans (Bloomberg).

==ASIA:

China plans its cross-border bond repo business for USD, EUR and Hong Kong's HKD.

Australia: The central bank (RBA) leaves rates unchanged, consensus was looking for a cut.